Watch our pension webinars

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Hello and welcome to Pension Awareness 2024.

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Yay. How are you all doing? Lovely to see you again.

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So today we've got a big question that we're going to answer

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and that is, is it a good idea to transfer my pension?

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Well, we always get asked this one

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and it's one of the biggest questions that we get asked.

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So we're going to answer that today.

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We've got Sarah with us from Royal London,

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and we've got Justin with us as well.

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How are you both doing? Doing really

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Well, Tony? Very well, thanks Tony.

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Really well.

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How are you? I'm well. I'm well.

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I'm really excited about this week.

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Really, really excited you.

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So I've got some notes down here.

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So I just wanted to say a big thank you as well

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to our partners this year, Royal London, who are partnering

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with pension, pension awareness.

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We put them on screen now and you'll see them.

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So can we cheer for ourselves?

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Yeah, you can cheer for the, so, yeah, yeah,

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you can see him in the background, Royal London.

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Well done. Brilliant.

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So, um, like I said,

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before we get started, I wanted to show you the website.

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So this week you are able to go onto our website,

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you run it now and book.

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We've got Marshall, didn't, you know, we've got more shows

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and just this one, loads of shows loads.

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We've got nine shows this week. Wow.

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So you can go onto our website and book on there.

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And yeah, look at all the other, you might be even signed up

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to other shows, book them all, book them all, book them all.

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Um, so make sure you go to that site.

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Um, James, can we go to the website big

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so we can see it on screen?

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That'd be great. So here, um, so if you go down, you'll able

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to see the timetable, you see all the shows here.

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Biggest question we get asked, um,

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after, can I combine my pension pots?

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Can I transfer my pension pots?

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Is, are the shows recorded and Yes they are.

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You can go to the Catchup area on this website now.

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So James, could we just show the guests

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where the catch up repair is?

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Yep. Just in that tab there you can see, um, here, um, well,

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Sarah, from last year's show, um, end

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of the today you'll see the, the show's been put there

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and they're not just gonna be on for this week,

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they'll be on for the next 12 months.

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So make sure you use that.

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Not only that, the website has, um, the article section.

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So we've got some really good articles on there.

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So make sure you have a look at them too.

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So where are we starting with this show then?

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What we say, what we're talking about first? Well, we're

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Talking about pension transfers,

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but Johnny I think it's time for you to just leave us alone

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and Justin and I'll on with

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It. Right, you did

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this last time.

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Off you go. Alright, go, go.

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I'll take my store with me. I'll take my store

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with me. Thank you very much.

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I take your furniture right.

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So yeah, we are gonna be talking about, uh,

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transferring your pension.

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Is it right for me? I'm Sarah Penwell,

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I'm the consumer finance specialist at Royal London

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and I'm joined today by my colleague Justin.

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So Justin, I know you answer to most things,

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but what's your job title and what do you do? Right,

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Well, hello everybody.

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Uh, I'm Justin COIs. I'm a pension expert at Royal London.

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So I write and talk about how pensions work.

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Um, and today we're gonna be talking about pension transfers

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because that's one of the things

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that we are most often asked about.

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And Justin, you use the term transfer,

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but people may have heard Johnny talked

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about consolidating pensions.

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Yes. And people may have thought about switching or merging

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or just bringing their pots together.

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Are all these terms referring to the same thing

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or is there a difference between them?

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Yeah, all of these terms mean the same thing.

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If we're talking about transferring one pension pot

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to another pension pot.

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Now these types of pensions

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and owners as define contribution pensions,

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but do you know, whatever you call it,

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it's about transferring one pot of pension money that you

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and perhaps your employer have added to

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and putting it into another pension pot.

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Now, Royal London, we've undertaken research recently

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with 4,000 UK adults who were under pension age,

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but who did have a pension

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and while just over a third it was 35% said

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that they have transferred their pension

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to their new employer scheme when they moved jobs, 56% said

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that they have never done this.

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So I guess that begs the question, why would you want

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to transfer your pension?

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And I really think that it helps to think

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of the working lives that many of us have these days.

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Most of us don't have a job for life anymore.

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Maybe you don't want that,

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but actually the more jobs you have,

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the more difficult it can be to keep track of all

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of the pensions that come along.

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Uh, with that. Now I've had around six jobs in my lifetime.

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A lot of you will have had many more than that.

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But actually the more jobs you have and,

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and most people who are now automatically enrolled into

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their workplace pension scheme pretty soon

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after they start with their new employer, that can mean lots

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of pension pots to keep track of.

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Now it is important to say that we are not saying

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that just because you have lots of pensions

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that you should transfer them.

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And in fact, there are some people

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who can't transfer even if they want to.

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So let's look at an example Justin.

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Say, say you're a firefighter.

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Say you work for the NHS

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or you're a teacher,

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could you transfer your pension in that situation?

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No, these, these people can't.

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Normally if you work in the public sector,

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you can't transfer your pension

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to a defined contribution scheme.

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And the reason behind that is

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that public sector pensions don't build up a pot of money.

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So if you work in the public sector today

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and you're a member of the pension scheme,

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then the contributions that you

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and your employer make towards that pension today go

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to pay the retirement benefits

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of today's public sector retirees.

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So it doesn't build up a fund of money

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that you can transfer.

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Now, there is one notable exception to that

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and that's if you work for local government.

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Okay? So if you're in the local government pension scheme,

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that does build up a fund of money

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and you can transfer out of that if you wish.

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But, and this is a pretty big,

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but that doesn't mean that you should transfer

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if you are in the local government pension scheme

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or quite frankly a,

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a private sector defined benefit pension scheme

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and jargon alert, jargon alert indeed, sorry.

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But occasionally we, we have to, um, uh,

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and that can be either a final salary pension

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or it could be some other sort of salary related benefit.

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It's generally assumed to be a bad idea

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to transfer your pension.

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And the reason behind that is that defined benefit pensions

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make a promise to keep on paying you a pot of money

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or a, a regular income for the rest of your life.

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It's kind of like keeping on getting your salary

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except you'll get less of course.

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And if you have a spouse

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or in some instances a partner who is alive longer than you,

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then they'll have to keep on paying a regular

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income to them as well.

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And one of the key things here is

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that it is your employer's responsibility, not your to,

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to make sure that there is enough money

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to keep on paying those retirement benefits to you

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and perhaps your spouse

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or partner for as long as you all live,

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not your responsibility.

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And that's a really valuable benefit to have.

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However, there will be some people

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who do have these defined, um, benefit pensions

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and they are thinking about transferring them.

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If you'd like to know more, there is a guide

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that will help you understand the key things you need

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to consider, the key risks that you need to be aware of.

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And that's on the Money Helper website.

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And that's an independent website

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that's backed by the government.

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So having just told you a bit about people

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who can't transfer in this live show,

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we're gonna focus on things

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to think about if you can transfer.

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So that's really people who've got these

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defined contribution pensions.

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So again, apologies to the jargon, this is the kind

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of pension that you build up a pot

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of money while you are working

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and then you can turn that pot

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of money into an income will take lump

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sums from it when you retire.

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And that research that Justin mentioned a moment ago,

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we also found that people on average have had 2.4

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pensions during their lifetime.

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Now about you Justin, but I've never bought 0.4 of pension.

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But I guess, I guess as averages for you,

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what was interesting though was that younger people,

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so those in their kind of early twenties up

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to about mid thirties, they'd already had almost three.

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They had 2.9 pensions on average.

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So I think it just shows you a bit about the changing

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sort of work environment.

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And of course, you know, the more pensions you have

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for some people it can be a bit harder to keep track of.

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But I guess Justin, one

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of the main reasons why people might want to transfer is

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because of the, the charges, um, that they will be charged.

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So basically being able to pay less by transferring.

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But the question falls from that,

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you know, how do charges work?

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What is it that people need to look out for?

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Yeah, it, it's a very good question.

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Now all providers will apply a yearly charge

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for managing your pension.

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It's known as the annual management charge.

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You might sometimes see it referred to as the A MC

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and that is usually taken either monthly

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or annually from the value of your pension savings.

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Now, I know this can be a little bit complex,

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but comparing, being able

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to compare charges on your pension plan is really important.

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Now you can find this information in a

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variety of different places.

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First of all, um, there is the documentation

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that you received when you first joined your,

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um, your pension scheme.

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It's called the key features document

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that will have information about charges on it.

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There is the annual statement

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that your pension provider sends you each yet

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that will have information about charges on it

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or if your pension provider has an app

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that will have information about charges on it as well.

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In fact, if your provider does have an app,

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and of course if you are comfortable with using apps,

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then it's usually a pretty good idea to download that app

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because it's likely to have lots

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of additional information in there that you are, um,

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that you are likely to find useful.

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Now if you are a member of a workplace pension scheme, uh,

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then the default fund, which is

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where most people have their money invested must apply an

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annual management charge of 0.75%

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or less of your total pot savings.

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Now that default fund, that's

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where everybody is put when they're first automatically

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enrolled into their pension fund.

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So what, what does a charge

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of less than 0.75% actually mean?

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I mean percentages, isn't it? Well it is, isn't it?

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You know, percentages don't mean a lot to many of us.

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We would probably prefer to see this expressed

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as a pounds and pence amount.

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00:10:34.465 --> 00:10:38.085
But actually being able to compare the percentage charge

259
00:10:38.105 --> 00:10:40.085
of one scheme with a percentage charge

260
00:10:40.085 --> 00:10:42.685
of another scheme is really important to be able

261
00:10:42.685 --> 00:10:45.245
to get a fair and equal comparison.

262
00:10:45.905 --> 00:10:50.445
So if you had a charge of 0.75%

263
00:10:50.465 --> 00:10:53.965
and let's say you had 10,000 pounds in your pension scheme,

264
00:10:54.315 --> 00:10:58.205
that would mean that you would pay no more than 75 pounds

265
00:10:58.825 --> 00:11:00.685
as your annual management charge.

266
00:11:00.825 --> 00:11:04.845
Now a lot of modern pensions will charge a similar amount to

267
00:11:04.845 --> 00:11:07.245
that, but you could have older style pensions

268
00:11:07.245 --> 00:11:10.565
that charge a lot more than 0.75%.

269
00:11:11.225 --> 00:11:12.365
In fact, that's one

270
00:11:12.365 --> 00:11:15.085
of the great things about workplace pensions is

271
00:11:15.085 --> 00:11:17.245
that they're generally quite transparent.

272
00:11:17.305 --> 00:11:20.325
And by that I mean it's relatively easy to be able to see

273
00:11:20.555 --> 00:11:22.725
what that annual management charge is.

274
00:11:23.305 --> 00:11:25.885
So there you go. That's the annual management charge

275
00:11:25.885 --> 00:11:28.885
and that is designed specifically to help people understand

276
00:11:28.915 --> 00:11:30.525
what charges they're paying on their pension,

277
00:11:30.995 --> 00:11:32.765
even if they're not pension experts

278
00:11:33.025 --> 00:11:34.165
Or indeed pension geeks

279
00:11:34.165 --> 00:11:35.645
Or indeed pension geeks. Indeed.

280
00:11:35.885 --> 00:11:38.565
So now say you have a workplace pension, uh, one

281
00:11:38.565 --> 00:11:40.725
of the questions that we get asked is, if I was to

282
00:11:41.365 --> 00:11:42.805
transfer an old workplace pension,

283
00:11:43.175 --> 00:11:45.565
could I end up paying more in charges?

284
00:11:45.745 --> 00:11:47.845
And the answer is quite possibly,

285
00:11:47.845 --> 00:11:50.725
which is why it's really important to check out the charges,

286
00:11:50.875 --> 00:11:53.405
both of the old pension and the new one.

287
00:11:53.565 --> 00:11:55.525
'cause you could pay more or you could indeed pay less.

288
00:11:56.065 --> 00:11:58.685
Now, Justin was talking about the charges on a default fund.

289
00:11:58.745 --> 00:12:01.405
And one of the things is that you will pay the same charges,

290
00:12:01.785 --> 00:12:05.005
not 0.75% or less no matter how much

291
00:12:05.065 --> 00:12:06.885
or how little you have in your fund.

292
00:12:06.885 --> 00:12:09.325
And in fact, you'd pay that on any money you transferred in

293
00:12:09.745 --> 00:12:11.725
as well as your monthly contributions.

294
00:12:12.225 --> 00:12:15.965
Now, because you pay this same charge, this is really useful

295
00:12:16.145 --> 00:12:18.645
for people who don't have huge pensions.

296
00:12:18.985 --> 00:12:20.885
So that could be somebody who's younger,

297
00:12:21.465 --> 00:12:23.925
it could be someone who's started saving

298
00:12:23.945 --> 00:12:25.285
for their pension fairly recently,

299
00:12:25.665 --> 00:12:28.045
or it could be someone who's had a career break.

300
00:12:28.045 --> 00:12:31.485
Exactly. Now it's different though if you have personal

301
00:12:31.505 --> 00:12:32.805
or individual pensions

302
00:12:32.805 --> 00:12:35.965
because what pension providers often do is they'll have one

303
00:12:35.965 --> 00:12:37.285
charge up to a certain amount

304
00:12:37.545 --> 00:12:38.925
and then they'll tier the charge.

305
00:12:39.065 --> 00:12:43.005
So you may pay a lower percentage charge if you have a

306
00:12:43.005 --> 00:12:45.485
pension pot above a certain size with that provider.

307
00:12:45.585 --> 00:12:47.845
So I think the best way is, uh, James,

308
00:12:47.865 --> 00:12:50.485
if we can have our first slide to just explain this.

309
00:12:51.345 --> 00:12:53.525
So let's look at the situation

310
00:12:53.525 --> 00:12:55.765
where you have four different pension pots

311
00:12:55.765 --> 00:12:57.525
with four different pension providers.

312
00:12:58.065 --> 00:13:01.485
Two of them have 10,000 pounds in one has 40,000 pounds

313
00:13:01.745 --> 00:13:03.005
and one has 50,000 pounds.

314
00:13:03.005 --> 00:13:05.005
So you've got 110,000 pounds in all,

315
00:13:05.225 --> 00:13:06.365
but with different providers.

316
00:13:07.025 --> 00:13:09.725
Now, let's assume they all charge the same amount

317
00:13:09.825 --> 00:13:12.045
and they all tier their charges at the same rate.

318
00:13:12.505 --> 00:13:17.205
So they're charging 0.7% if you have up 200,000 pounds in

319
00:13:17.205 --> 00:13:20.765
your pension pot and not 0.5% if you have

320
00:13:20.915 --> 00:13:22.125
over a hundred thousand pounds.

321
00:13:22.225 --> 00:13:23.685
So James, next slide please.

322
00:13:24.285 --> 00:13:26.725
I was like saying that, but okay, so in

323
00:13:26.725 --> 00:13:31.565
that case you'd be paying 0.7%, that's 110,000 pounds.

324
00:13:31.955 --> 00:13:33.045
That works out at seven

325
00:13:33.305 --> 00:13:34.405
and 70 pounds a year

326
00:13:34.405 --> 00:13:36.565
that you would be paying on your pensions.

327
00:13:36.945 --> 00:13:38.725
Now, last slide for this section please.

328
00:13:39.385 --> 00:13:42.005
If you were to combine these pensions,

329
00:13:42.395 --> 00:13:44.925
then you'd have your 110,000 pounds

330
00:13:45.265 --> 00:13:46.405
all with the same provider.

331
00:13:46.945 --> 00:13:50.005
At that point, you'd qualify for this lower tier charge

332
00:13:50.465 --> 00:13:52.005
of N 0.5%.

333
00:13:52.425 --> 00:13:55.845
So you'd be paying 550 pounds a month a year rather.

334
00:13:55.905 --> 00:13:57.925
So that's a saving of over 200 pounds.

335
00:13:58.745 --> 00:14:01.885
Now the rates at which a a pension company will charge

336
00:14:02.065 --> 00:14:04.725
and the point at which they start tiering those charges

337
00:14:05.385 --> 00:14:07.085
can vary from provider to provider.

338
00:14:07.425 --> 00:14:09.645
So it's really important to do your research.

339
00:14:10.185 --> 00:14:12.925
You need to just investigate what you were paying previously

340
00:14:13.065 --> 00:14:14.765
and what you pay if you were to switch.

341
00:14:15.345 --> 00:14:16.645
And remember that you don't have

342
00:14:16.645 --> 00:14:18.365
to move all your pensions at once.

343
00:14:18.985 --> 00:14:21.725
You can, um, if you have got say three pensions, two

344
00:14:21.725 --> 00:14:23.445
of them are charging a higher amount

345
00:14:23.445 --> 00:14:24.765
and one of them is charging less,

346
00:14:25.115 --> 00:14:27.685
well then you could move the two more expensive pensions

347
00:14:27.865 --> 00:14:29.605
and leave the cheaper one where it is.

348
00:14:30.075 --> 00:14:31.405
It's entirely up to you.

349
00:14:31.785 --> 00:14:33.405
That's right. It's really important to know.

350
00:14:33.465 --> 00:14:35.485
Now, another reason that you might want

351
00:14:35.485 --> 00:14:38.045
to transfer are the options that you get when it comes

352
00:14:38.185 --> 00:14:39.245
to retirement.

353
00:14:39.425 --> 00:14:42.165
Now, some pension providers, um,

354
00:14:42.985 --> 00:14:45.565
but maybe don't offer a great deal of choice about

355
00:14:45.625 --> 00:14:47.525
how you can take your pension at retirement.

356
00:14:47.755 --> 00:14:49.965
They might only offer you the option

357
00:14:49.985 --> 00:14:51.925
to take out all the money that you've got in

358
00:14:51.925 --> 00:14:53.605
that pension plan in one go.

359
00:14:53.745 --> 00:14:55.925
And that could mean that you end up paying a lot more

360
00:14:56.065 --> 00:14:57.125
tax than you should do.

361
00:14:57.505 --> 00:15:00.285
Or they might only let you take something called an annuity.

362
00:15:00.305 --> 00:15:02.205
That's where you take all your pension benefits

363
00:15:02.345 --> 00:15:03.965
and you convert that into a regular

364
00:15:04.025 --> 00:15:05.325
income for the rest of your life.

365
00:15:05.785 --> 00:15:09.085
Or they might not offer something called draw down

366
00:15:09.145 --> 00:15:10.245
or income drawdown.

367
00:15:10.345 --> 00:15:12.245
Now ignore, ignore the terminology.

368
00:15:12.625 --> 00:15:13.965
All that drawdown means is

369
00:15:13.965 --> 00:15:16.765
that your pension plan stays invested in that pot.

370
00:15:17.665 --> 00:15:19.165
You can take your tax free cash

371
00:15:19.745 --> 00:15:22.605
and then maybe a little bit of money monthly if you

372
00:15:22.625 --> 00:15:25.005
as an income if you are, uh, no longer working.

373
00:15:25.105 --> 00:15:27.525
Or you might prefer just to take all of your tax free cash

374
00:15:27.985 --> 00:15:29.725
and not draw any monthly income

375
00:15:29.725 --> 00:15:31.565
because, uh, you are still working

376
00:15:31.705 --> 00:15:33.445
and you don't need an income from

377
00:15:33.445 --> 00:15:34.485
that pension at that point.

378
00:15:34.865 --> 00:15:37.765
Or you might just want to take lump sums every now

379
00:15:37.765 --> 00:15:40.125
and again, maybe because you have one

380
00:15:40.125 --> 00:15:42.285
of those defined benefit pensions that we mentioned earlier

381
00:15:42.545 --> 00:15:46.085
and that satisfies your monthly income need,

382
00:15:46.225 --> 00:15:48.845
but you still need a little bit of money for, you know,

383
00:15:49.055 --> 00:15:50.845
extra things, holidays, birthdays,

384
00:15:50.875 --> 00:15:52.125
that sort of Christmas presents.

385
00:15:52.415 --> 00:15:53.565
Thank you. That's kind of you.

386
00:15:53.745 --> 00:15:57.085
Um, yeah, uh, Christmas presents as as well.

387
00:15:57.425 --> 00:15:59.365
Um, so there are a few things that you,

388
00:15:59.365 --> 00:16:02.685
that you could want also, um, just bear in mind

389
00:16:03.075 --> 00:16:07.525
that some providers might not offer your family the same,

390
00:16:07.785 --> 00:16:10.005
uh, choices if you were to die

391
00:16:10.025 --> 00:16:12.085
and that could be really important to you as well.

392
00:16:12.865 --> 00:16:14.405
And then this is frankly the F factor.

393
00:16:14.665 --> 00:16:18.085
If you have several pensions, then is that a genuine reason

394
00:16:18.085 --> 00:16:19.125
for wanting to transfer?

395
00:16:19.145 --> 00:16:21.285
You have them some dotted around with different providers.

396
00:16:21.925 --> 00:16:23.205
I think just it's really kind

397
00:16:23.205 --> 00:16:24.765
of quite a personal decision, isn't it?

398
00:16:24.765 --> 00:16:27.765
Yeah, because it depends on how you find kind of life admin

399
00:16:27.765 --> 00:16:28.805
and financial admin.

400
00:16:28.865 --> 00:16:31.245
And for some people having different pensions

401
00:16:31.245 --> 00:16:34.165
with different providers, that's actually gonna be quite

402
00:16:34.165 --> 00:16:36.725
difficult to find it maybe harder to kind of see

403
00:16:36.725 --> 00:16:38.205
that overall picture of where there are time is.

404
00:16:38.205 --> 00:16:40.765
Whereas having them all in the same place means they kind

405
00:16:40.765 --> 00:16:42.885
of feel really confident about what they've got

406
00:16:42.985 --> 00:16:44.045
and it really helps them

407
00:16:44.045 --> 00:16:46.045
to start thinking about their retirement planning as well.

408
00:16:46.825 --> 00:16:48.165
But for other people, that just

409
00:16:48.165 --> 00:16:49.205
will not be a barrier at all.

410
00:16:49.205 --> 00:16:51.365
It doesn't bother them. In fact, in this research

411
00:16:51.365 --> 00:16:53.645
that we've been talking about, we asked those people

412
00:16:53.705 --> 00:16:56.045
who had transferred their pension why they did so,

413
00:16:56.425 --> 00:16:59.325
and around half of people said it was, well,

414
00:16:59.325 --> 00:17:01.925
the fair fact they said for easier pensions management.

415
00:17:01.925 --> 00:17:03.005
But it's the same thing really.

416
00:17:03.585 --> 00:17:06.725
Um, it is worth saying though, if you are somebody

417
00:17:06.745 --> 00:17:09.525
who finds it a bit difficult to have pensions dotted

418
00:17:09.525 --> 00:17:12.085
around the place, there is something called the pensions

419
00:17:12.085 --> 00:17:13.685
dashboard, which is gonna be launched in

420
00:17:13.835 --> 00:17:14.925
sort of a couple of years time or so.

421
00:17:15.345 --> 00:17:17.285
And that's going to be an online dashboard

422
00:17:17.375 --> 00:17:20.405
where you'll be able to see all your pensions in one place,

423
00:17:20.875 --> 00:17:22.405
even if they're with different providers

424
00:17:22.905 --> 00:17:25.085
and you'll be able to see your state pension as well.

425
00:17:25.945 --> 00:17:28.245
Now we just talked about the F factor. Yes.

426
00:17:28.375 --> 00:17:29.885
Which is a big deal to a lot of people

427
00:17:30.105 --> 00:17:31.105
Indeed. But,

428
00:17:31.105 --> 00:17:34.845
um, investment choice, that can also be a factor

429
00:17:35.185 --> 00:17:36.685
for people thinking about transferring

430
00:17:36.685 --> 00:17:37.805
as well, can't it? Yes.

431
00:17:37.965 --> 00:17:41.285
Yeah, it can, it can be when you, uh, save into a pension,

432
00:17:41.355 --> 00:17:43.325
your money is invested

433
00:17:43.385 --> 00:17:46.485
and different providers will offer different

434
00:17:46.485 --> 00:17:47.685
investment choices.

435
00:17:48.425 --> 00:17:51.405
So you, for example, might really want

436
00:17:51.425 --> 00:17:53.365
to invest in a particular country

437
00:17:53.985 --> 00:17:58.565
or, um, into, um, a particular sector or,

438
00:17:58.585 --> 00:18:00.285
or sectors assets or something like that.

439
00:18:00.285 --> 00:18:02.165
Yeah, yeah. What I'm talking about there more jargon,

440
00:18:02.165 --> 00:18:04.085
things like, yeah, it is more jargon, but,

441
00:18:04.085 --> 00:18:05.645
but sometimes it's important jargon.

442
00:18:05.645 --> 00:18:09.565
It's it's things like equities or commercial property, um,

443
00:18:10.065 --> 00:18:13.205
or, um, or, or maybe, um, corporate bonds

444
00:18:13.265 --> 00:18:14.525
or that sort of thing.

445
00:18:14.865 --> 00:18:19.005
Um, so if if that's important to you, then um, then

446
00:18:19.435 --> 00:18:20.805
that could be something that you would

447
00:18:20.805 --> 00:18:21.885
need to have a look around.

448
00:18:21.985 --> 00:18:24.765
Now your pension provider, if you have an older style plan,

449
00:18:24.765 --> 00:18:28.285
might not offer a broad range of investment options.

450
00:18:28.545 --> 00:18:31.045
So if that's a big deal, transferring perhaps

451
00:18:31.065 --> 00:18:34.765
to your workplace pension might offer you more choice.

452
00:18:35.345 --> 00:18:39.725
Um, now some people might want more choice than their

453
00:18:39.725 --> 00:18:40.805
workplace pension offers,

454
00:18:41.625 --> 00:18:44.805
but if you were still employed with your employer

455
00:18:44.985 --> 00:18:46.725
and you move away from the workplace pension,

456
00:18:47.025 --> 00:18:49.285
you might miss out on valuable employer

457
00:18:49.285 --> 00:18:50.565
pension contributions.

458
00:18:50.785 --> 00:18:55.125
So we would need to think, um, long and hard, um,

459
00:18:55.225 --> 00:18:57.325
before we, we, we went and did that.

460
00:18:57.705 --> 00:19:01.445
Now you can also think about your investment options, um,

461
00:19:02.435 --> 00:19:04.405
from the perspective maybe of your needs

462
00:19:04.465 --> 00:19:07.285
and objectives, maybe thinking about your

463
00:19:07.925 --> 00:19:10.525
provider's approach to things like responsible investment

464
00:19:10.985 --> 00:19:12.965
or environmental social

465
00:19:13.065 --> 00:19:15.085
and governance factors, ESG factors

466
00:19:15.085 --> 00:19:16.365
they're often referred to.

467
00:19:16.505 --> 00:19:18.045
You might hear them described like that.

468
00:19:18.305 --> 00:19:22.445
Now those help investors measure the ethical

469
00:19:22.445 --> 00:19:25.005
and sustainable sustainability impact

470
00:19:25.225 --> 00:19:27.605
of a particular business or sector.

471
00:19:28.065 --> 00:19:29.845
Now that could be important to you

472
00:19:30.145 --> 00:19:32.805
or there could be other areas that are, are,

473
00:19:32.945 --> 00:19:34.565
are really important to you as well.

474
00:19:35.385 --> 00:19:39.645
Now I probably should say at this point that it is important

475
00:19:39.645 --> 00:19:41.565
to know that your pension money is invested

476
00:19:41.585 --> 00:19:45.205
and it means that the value can go down as well as up.

477
00:19:45.205 --> 00:19:47.045
And there is not any guarantee

478
00:19:47.195 --> 00:19:49.925
that bringing all your pension funds together into one place

479
00:19:50.185 --> 00:19:53.165
is going to result in a larger pension pot at retirement

480
00:19:53.505 --> 00:19:56.565
or a larger retirement income when you come to retire.

481
00:19:56.745 --> 00:20:00.765
And you could get back less than you pay in.

482
00:20:01.665 --> 00:20:02.765
Now, just one point

483
00:20:02.765 --> 00:20:04.805
that I wanna finish off touching on here.

484
00:20:04.955 --> 00:20:09.525
Okay, um, if you, um, have, uh, a workplace pension

485
00:20:10.065 --> 00:20:12.245
you might have recently been, uh, or

486
00:20:12.265 --> 00:20:14.685
and particularly if that workplace pension has moved

487
00:20:15.085 --> 00:20:17.125
recently from one provider to another,

488
00:20:17.475 --> 00:20:19.205
your new pension provider might have

489
00:20:19.205 --> 00:20:20.285
contacted you, get in touch.

490
00:20:20.285 --> 00:20:24.365
Yeah. Yeah. They might have done making an offer to say

491
00:20:24.395 --> 00:20:26.325
that, you know, you could transfer all

492
00:20:26.325 --> 00:20:28.325
of your older workplace pension plans

493
00:20:28.345 --> 00:20:30.885
or all your older pension plans into this new one.

494
00:20:31.225 --> 00:20:34.605
Now the first thing to say about that is that we all need

495
00:20:34.605 --> 00:20:36.205
to be constantly vigilant

496
00:20:36.225 --> 00:20:38.605
and on the lookout for pension scams.

497
00:20:38.835 --> 00:20:42.565
Okay? So if you are in any doubt at all about the validity

498
00:20:42.565 --> 00:20:44.325
of the correspondence that you've received,

499
00:20:44.585 --> 00:20:46.525
always a good idea to get in touch

500
00:20:46.525 --> 00:20:49.045
with your new workplace pension provider, um,

501
00:20:49.315 --> 00:20:52.405
with using details that you get from a trusted source.

502
00:20:52.825 --> 00:20:55.445
Now, maybe a good idea to speak to your employer in

503
00:20:55.445 --> 00:20:58.205
that instance, but once you are comfortable that

504
00:20:58.205 --> 00:21:02.365
that correspondence has come from the new pension provider,

505
00:21:02.635 --> 00:21:04.485
this can be a relatively simple

506
00:21:04.585 --> 00:21:07.245
and cost-effective way of being able to pull all

507
00:21:07.245 --> 00:21:08.605
of your older pensions

508
00:21:08.605 --> 00:21:11.725
or all the ones that you want together into one place.

509
00:21:11.905 --> 00:21:15.485
Now we do need to, um, bear in mind

510
00:21:15.515 --> 00:21:17.445
that if you are approached in this way,

511
00:21:17.715 --> 00:21:20.405
your new provider is not recommending that you transfer

512
00:21:20.545 --> 00:21:21.845
or advising you to do it.

513
00:21:21.865 --> 00:21:23.925
It is, it is purely your decision.

514
00:21:24.595 --> 00:21:27.925
What it is doing however, is uh, it's likely

515
00:21:27.945 --> 00:21:30.965
to have in this pack the annual management charge

516
00:21:31.145 --> 00:21:34.845
of the new workplace pension plan if it has recently moved

517
00:21:34.905 --> 00:21:36.125
the annual management charge

518
00:21:36.145 --> 00:21:38.365
of your previous workplace pension plan,

519
00:21:38.505 --> 00:21:39.685
the fund options available,

520
00:21:40.025 --> 00:21:41.445
the retirement options available,

521
00:21:41.545 --> 00:21:46.125
and an invitation to help facilitate moving all

522
00:21:46.125 --> 00:21:47.925
of these pension plans together.

523
00:21:48.265 --> 00:21:50.965
Now you do still need to bear in mind that you need

524
00:21:50.965 --> 00:21:52.525
to identify if any

525
00:21:52.525 --> 00:21:55.045
of your older pensions have any protections on them,

526
00:21:55.105 --> 00:21:57.405
and Sarah and I are gonna talk about that in just a second.

527
00:21:57.865 --> 00:22:01.325
But if they can be moved, if there's no barriers to that,

528
00:22:01.595 --> 00:22:04.005
then this can be particularly useful.

529
00:22:04.285 --> 00:22:06.645
I would say for people that have maybe only started their

530
00:22:06.645 --> 00:22:09.365
pension savings journey, perhaps in the last sort of 10,

531
00:22:09.365 --> 00:22:12.725
15 years, they've had a number of different jobs

532
00:22:13.145 --> 00:22:15.645
and that's resulted in several relatively

533
00:22:15.645 --> 00:22:16.765
small pension pots.

534
00:22:17.345 --> 00:22:19.885
Now if you are then thinking of transferring,

535
00:22:20.195 --> 00:22:22.525
it's a really good opportunity to try

536
00:22:22.525 --> 00:22:24.605
and track down any lost pensions that you may have.

537
00:22:24.605 --> 00:22:27.165
So these could be pensions from jobs you did some time ago

538
00:22:27.165 --> 00:22:29.005
where maybe, you know, you, you moved a address

539
00:22:29.065 --> 00:22:31.525
and you didn't give the pension provider your new address.

540
00:22:32.185 --> 00:22:35.365
Now it's estimated there's a staggering 26 billion pounds,

541
00:22:36.195 --> 00:22:38.205
billion pounds in lost pensions.

542
00:22:38.285 --> 00:22:40.085
I mean, that's a huge, huge amount of money.

543
00:22:40.945 --> 00:22:44.285
Now the really good news is you don't need to pay somebody

544
00:22:44.345 --> 00:22:45.645
to help you track this down.

545
00:22:45.835 --> 00:22:48.405
There's a free to use government service called the Pension

546
00:22:48.685 --> 00:22:50.245
Tracing Service, which is an

547
00:22:50.245 --> 00:22:51.445
online service that you can use.

548
00:22:51.505 --> 00:22:54.205
Now, as long as you have some basic information either about

549
00:22:54.505 --> 00:22:57.965
who the pension provider is or your employer's current

550
00:22:57.985 --> 00:23:00.485
or old address, then you can just pop that in.

551
00:23:00.905 --> 00:23:03.325
And what this service will do is not like kind

552
00:23:03.325 --> 00:23:06.325
of a government funded pension sniffer dog that will run

553
00:23:06.325 --> 00:23:08.485
around, get all your pensions enthusiastically

554
00:23:08.485 --> 00:23:09.885
and bring them back in return for a treat.

555
00:23:10.185 --> 00:23:12.525
But it will give you up to date details

556
00:23:12.625 --> 00:23:14.005
for your pension scheme.

557
00:23:14.345 --> 00:23:17.645
And then you need to get in touch with the pension scheme

558
00:23:17.645 --> 00:23:18.965
and say, actually I think I've got a

559
00:23:18.965 --> 00:23:20.125
pension pot with my name on it.

560
00:23:20.345 --> 00:23:23.445
So the details are on screen now long URL, which I,

561
00:23:23.795 --> 00:23:27.365
well I'll read out gov uk hy uh slash find hyphen pension

562
00:23:27.565 --> 00:23:28.725
hyphen contact hyphen details.

563
00:23:29.465 --> 00:23:32.285
But I say it's on the screen, so, um, do give that a try.

564
00:23:32.305 --> 00:23:34.325
You think you have got some old pensions.

565
00:23:34.385 --> 00:23:37.685
Now, Justin, you mentioned a moment ago, um, sort

566
00:23:37.685 --> 00:23:39.605
of protections you may have on older style

567
00:23:39.845 --> 00:23:41.125
pensions and yet a bit

568
00:23:41.125 --> 00:23:42.125
More jargon That I used.

569
00:23:42.125 --> 00:23:43.205
Yeah, yeah, yeah, jargon.

570
00:23:43.465 --> 00:23:45.885
So something called a guaranteed annuity rate is something

571
00:23:45.885 --> 00:23:47.485
that, you know, a number of older schemes might have.

572
00:23:47.715 --> 00:23:50.085
Firstly, what on earth is a guaranteed annuity

573
00:23:50.085 --> 00:23:51.485
rate and why does it matter?

574
00:23:51.635 --> 00:23:52.645
It's a very good question.

575
00:23:52.755 --> 00:23:54.045
Okay, look, you wouldn't expect

576
00:23:54.045 --> 00:23:56.285
to see this on a modern pension contract.

577
00:23:56.705 --> 00:23:58.725
Um, but a guaranteed annuity rate,

578
00:23:58.725 --> 00:24:01.245
which you'll sometimes see referred to as a a GAR

579
00:24:01.265 --> 00:24:04.645
or a GAR, they were quite common on pensions

580
00:24:04.645 --> 00:24:06.565
that were set up maybe in the eighties

581
00:24:06.565 --> 00:24:08.245
or nineties, even if you're still paying

582
00:24:08.315 --> 00:24:09.565
into that pension today.

583
00:24:09.985 --> 00:24:12.965
So what the guaranteed annuity rate does is it's the

584
00:24:13.165 --> 00:24:16.045
provider, um, promising to pay a minimum level

585
00:24:16.045 --> 00:24:18.045
of income when you come to retirement

586
00:24:18.065 --> 00:24:19.525
and take those pension benefits

587
00:24:19.525 --> 00:24:22.085
and convert that into a retirement income

588
00:24:22.265 --> 00:24:23.445
for the rest of your life.

589
00:24:24.025 --> 00:24:25.925
The rate that you'll get from that provider

590
00:24:25.925 --> 00:24:28.485
that offers the guaranteed annuity rate is likely

591
00:24:28.545 --> 00:24:31.845
to be higher than most people could get on the open market

592
00:24:31.915 --> 00:24:33.125
when they come to retire.

593
00:24:34.105 --> 00:24:35.605
So I guess it begs the question,

594
00:24:36.105 --> 00:24:37.405
how much extra are we talking?

595
00:24:37.745 --> 00:24:39.885
Is this just a couple of extra pounds each month

596
00:24:40.145 --> 00:24:42.565
or could it be a whole extra chunk of money?

597
00:24:43.105 --> 00:24:45.965
And the truth of it is, it really depends on the size

598
00:24:45.985 --> 00:24:47.285
of your pension pot.

599
00:24:47.385 --> 00:24:49.005
But to give you an indication,

600
00:24:49.105 --> 00:24:52.445
the current deed annuity rates that we commonly saw were

601
00:24:52.445 --> 00:24:54.605
between nine and 11%.

602
00:24:54.625 --> 00:24:57.005
We sometimes saw them a little bit higher than that. Yeah.

603
00:24:57.225 --> 00:24:58.965
Um, and uh,

604
00:24:59.185 --> 00:25:02.245
and that to give you a bit of context is around 30

605
00:25:02.385 --> 00:25:05.845
to 50% higher than most people could probably expect

606
00:25:05.845 --> 00:25:07.045
to get on the market at the moment.

607
00:25:07.625 --> 00:25:09.125
So what that could mean is if you've,

608
00:25:09.125 --> 00:25:11.365
for every hundred pounds you've got in your pension pot,

609
00:25:11.865 --> 00:25:13.965
you could through this guaranteed annuity rate, get

610
00:25:13.965 --> 00:25:17.685
between nine and 11 pounds of income a year compared

611
00:25:17.765 --> 00:25:19.845
to say six pounds at today's rate.

612
00:25:19.945 --> 00:25:22.245
So, you know, if you, depending on size of your pension pot,

613
00:25:22.245 --> 00:25:23.645
that could make a big difference.

614
00:25:24.425 --> 00:25:27.045
Now there are various factors that you'll need to consider,

615
00:25:27.065 --> 00:25:29.725
but in any case, if you do have one of these pensions

616
00:25:29.725 --> 00:25:31.845
and it's got more than 30,000 pounds in it,

617
00:25:32.115 --> 00:25:34.405
then you will need to take financial advice

618
00:25:34.665 --> 00:25:35.885
before you transfer it.

619
00:25:36.405 --> 00:25:37.805
Absolutely, you will. Now, uh,

620
00:25:37.945 --> 00:25:40.405
tax free cash is another one to think about.

621
00:25:40.405 --> 00:25:42.125
That's the tax free lump sum

622
00:25:42.125 --> 00:25:44.045
that you can take when you start

623
00:25:44.045 --> 00:25:45.645
to take your pension benefits.

624
00:25:45.905 --> 00:25:49.965
Now currently that is set at 25% of the value of the fund,

625
00:25:50.225 --> 00:25:53.445
but once again, some older style pension contracts did

626
00:25:53.465 --> 00:25:57.325
enable people to take more than 25% tax free cash.

627
00:25:57.625 --> 00:26:01.125
And it is possible to be able to transfer your pension

628
00:26:01.505 --> 00:26:02.645
and to keep that benefit.

629
00:26:02.945 --> 00:26:04.565
But we would generally suggest speaking

630
00:26:04.565 --> 00:26:05.805
to a financial advisor

631
00:26:05.945 --> 00:26:07.845
before, uh, transferring one

632
00:26:07.845 --> 00:26:09.245
of those if you're in that situation.

633
00:26:09.705 --> 00:26:12.885
Now another thing that we often get asked about isn't it,

634
00:26:12.905 --> 00:26:15.805
is what's the minimum age at which I can take my pension

635
00:26:16.245 --> 00:26:20.605
benefits, um, that is currently age 55 and less.

636
00:26:20.665 --> 00:26:23.125
Of course you are seriously or terminally ill.

637
00:26:23.465 --> 00:26:27.365
Um, but that 55 is due to increase to age 57

638
00:26:27.945 --> 00:26:29.845
in April, 2028.

639
00:26:30.355 --> 00:26:33.245
Okay? Now, once again, it's not very common,

640
00:26:33.345 --> 00:26:37.045
but some older style contracts did enable people to take,

641
00:26:37.265 --> 00:26:40.325
um, their pension benefits before that age 55.

642
00:26:40.745 --> 00:26:42.725
Uh, if you were in that situation

643
00:26:42.725 --> 00:26:46.485
and you were thinking about transferring it then um, you,

644
00:26:46.575 --> 00:26:48.565
you'd probably be well served to speak

645
00:26:48.625 --> 00:26:51.445
to a financial advisor in that instance as well.

646
00:26:52.545 --> 00:26:54.925
You might have heard of something called a loyalty bonus.

647
00:26:55.555 --> 00:26:56.725
It's a jargon alert, isn't it?

648
00:26:57.885 --> 00:27:00.605
A loyalty bonus, particularly if have had something called a

649
00:27:00.605 --> 00:27:02.445
with profits plan in the past.

650
00:27:02.905 --> 00:27:05.165
The key thing to know about this is to get

651
00:27:05.165 --> 00:27:07.125
that loyalty bonus, you normally need

652
00:27:07.125 --> 00:27:08.565
to stay invested in that fund.

653
00:27:08.825 --> 00:27:10.885
If you transfer your pension out of that fund,

654
00:27:11.185 --> 00:27:12.605
you lose that loyalty bonus.

655
00:27:13.385 --> 00:27:15.805
And just to reiterate that final point we,

656
00:27:15.805 --> 00:27:17.805
we mentioned earlier on, you do get some people

657
00:27:17.905 --> 00:27:19.685
who are still employed with their employer

658
00:27:19.685 --> 00:27:21.725
but they want to leave their employer's

659
00:27:21.725 --> 00:27:22.845
workplace pension scheme.

660
00:27:23.425 --> 00:27:27.165
If you do that, you do run the risk of missing out on

661
00:27:27.165 --> 00:27:29.565
that valuable employer pension contribution.

662
00:27:29.895 --> 00:27:32.965
Often employers will only pay into the workplace pension

663
00:27:33.235 --> 00:27:34.245
that they set up.

664
00:27:34.265 --> 00:27:37.325
So by moving away you can miss out on that contribution

665
00:27:37.625 --> 00:27:41.165
and that could result in you having a significantly lower

666
00:27:41.165 --> 00:27:42.805
pension pot at retirement. Couldn't

667
00:27:42.805 --> 00:27:43.805
It? That could make a

668
00:27:43.805 --> 00:27:44.445
big difference.

669
00:27:44.505 --> 00:27:46.885
So we've been through some of the pros and cons,

670
00:27:46.945 --> 00:27:48.725
but if you are thinking, okay, well I want

671
00:27:48.725 --> 00:27:51.085
to transfer my pension or pensions, can you just go ahead

672
00:27:51.085 --> 00:27:52.085
and sort it out yourself?

673
00:27:52.385 --> 00:27:53.925
And the answer is maybe,

674
00:27:54.145 --> 00:27:56.085
and it will depend on the kind of pension you have

675
00:27:56.085 --> 00:27:57.485
and we've sort of alluded to this,

676
00:27:58.305 --> 00:28:01.005
but if you have certain kinds of pen pensions,

677
00:28:01.005 --> 00:28:02.925
then you will have to get financial advice

678
00:28:03.305 --> 00:28:04.885
before you transfer 'em.

679
00:28:04.885 --> 00:28:07.365
Now it's worth remembering that these rules are here

680
00:28:07.365 --> 00:28:08.685
that they're designed to protect you

681
00:28:08.705 --> 00:28:10.925
to make sure you don't lose out by transferring.

682
00:28:11.025 --> 00:28:13.045
So James, can we have our next slide please?

683
00:28:13.865 --> 00:28:18.005
So these rules apply if you have a defined benefit pension

684
00:28:18.355 --> 00:28:20.765
that has more than 30,000 pounds in it

685
00:28:21.065 --> 00:28:23.925
and you want to transfer to a defined contribution pension,

686
00:28:24.745 --> 00:28:27.565
or if you have a defined contribution pension

687
00:28:27.595 --> 00:28:28.965
with more than 30,000 pounds.

688
00:28:29.265 --> 00:28:30.965
And it has one of these guarantees about

689
00:28:30.985 --> 00:28:32.605
how much you will get it retirement

690
00:28:32.865 --> 00:28:35.205
and you'd lose that by transferring.

691
00:28:36.105 --> 00:28:38.725
Now whether you have to take financial advice

692
00:28:38.785 --> 00:28:40.565
or not, it is often a good idea.

693
00:28:40.565 --> 00:28:42.605
Thanks very much James. That's, that's enough slide.

694
00:28:42.605 --> 00:28:45.245
Let's go back to Justin and me. Um, you could lose it.

695
00:28:45.275 --> 00:28:46.645
It's important, often a good idea

696
00:28:46.665 --> 00:28:48.645
to have financial advice anyway and that's

697
00:28:48.645 --> 00:28:50.605
because a financial advisor will look at

698
00:28:50.605 --> 00:28:51.645
your own circumstances.

699
00:28:51.795 --> 00:28:53.325
They'll kind of look at your income,

700
00:28:53.325 --> 00:28:55.445
the risk you're prepared to take, what you're trying

701
00:28:55.445 --> 00:28:57.365
to achieve with your pensions and retirement.

702
00:28:57.785 --> 00:28:59.165
And if you have a husband, wife,

703
00:28:59.185 --> 00:29:01.645
or partner take their circumstances into account

704
00:29:02.105 --> 00:29:04.325
and then they'll kind of draw a short list of options

705
00:29:04.385 --> 00:29:06.925
and then make a specific recommendation so you know,

706
00:29:06.925 --> 00:29:08.765
they can be really worth their weight in gold.

707
00:29:09.585 --> 00:29:11.685
Now we have talked through some

708
00:29:11.685 --> 00:29:13.565
of the pros and cons, haven't we? About

709
00:29:14.065 --> 00:29:15.065
We have indeed. It's

710
00:29:15.065 --> 00:29:16.205
probably just worth a bit of a recap

711
00:29:16.205 --> 00:29:17.365
because I think, I think it's, I think we've

712
00:29:17.365 --> 00:29:18.485
rattled through quite a lot of the

713
00:29:18.485 --> 00:29:19.485
Last 20 minutes. Of course, you know,

714
00:29:19.485 --> 00:29:20.085
it's a lot

715
00:29:20.085 --> 00:29:21.485
to fit into 20 minutes, isn't it?

716
00:29:21.485 --> 00:29:22.885
It's probably a lot to take on as well.

717
00:29:23.065 --> 00:29:25.605
So just to recap some of the main factors

718
00:29:25.605 --> 00:29:27.685
that you might want to think about if you are considering

719
00:29:27.765 --> 00:29:29.005
transferring your pension.

720
00:29:29.265 --> 00:29:32.525
So firstly is to compare that annual management charge

721
00:29:32.785 --> 00:29:36.005
of your new pension plan with the annual management charge

722
00:29:36.185 --> 00:29:37.205
of any of the plans

723
00:29:37.205 --> 00:29:40.325
that you're thinking about transferring into that new one.

724
00:29:40.505 --> 00:29:42.765
Uh, charges aren't the only factor to consider,

725
00:29:42.945 --> 00:29:44.965
but they're certainly a good place to start.

726
00:29:45.505 --> 00:29:49.245
Um, next, if you have older pension contracts, perhaps

727
00:29:49.245 --> 00:29:51.205
that have limited investment options

728
00:29:51.225 --> 00:29:54.685
and maybe they're not meeting your needs, then switching

729
00:29:54.685 --> 00:29:57.365
to something with more choices could be advantageous to you.

730
00:29:57.785 --> 00:30:01.645
Do bear in mind, most workplace pensions have a fairly broad

731
00:30:01.645 --> 00:30:03.605
range of investment needs, don't they? Yeah,

732
00:30:03.605 --> 00:30:04.605
Indeed.

733
00:30:04.625 --> 00:30:09.085
Um, if you were within say, five to 10 years of looking

734
00:30:09.105 --> 00:30:12.125
to take your pension benefits always worthwhile having a

735
00:30:12.125 --> 00:30:15.205
look at what options your existing provider has

736
00:30:15.265 --> 00:30:16.805
for accessing your pension.

737
00:30:17.225 --> 00:30:20.285
If those aren't really meeting your needs, then a transfer

738
00:30:20.285 --> 00:30:21.845
to another plan might be beneficial.

739
00:30:22.505 --> 00:30:23.845
And as you were mentioning

740
00:30:23.845 --> 00:30:26.925
before, a lot of people will have had a lot of jobs

741
00:30:27.305 --> 00:30:29.125
and a lot of pension funds built up.

742
00:30:29.305 --> 00:30:31.845
And if all of those various different pension funds,

743
00:30:32.025 --> 00:30:35.005
the F factor, the F factor indeed is making it difficult

744
00:30:35.005 --> 00:30:37.565
for you to engage with your pension scheme,

745
00:30:37.915 --> 00:30:41.965
then perhaps transferring them into one plan might make it

746
00:30:41.965 --> 00:30:44.845
easier for you to deal with and to engage.

747
00:30:45.025 --> 00:30:47.605
But I would say please don't let the ease of use

748
00:30:47.625 --> 00:30:49.805
and convenience completely override charges

749
00:30:49.985 --> 00:30:51.445
and other important factors.

750
00:30:51.545 --> 00:30:53.565
And also let's always,

751
00:30:53.865 --> 00:30:56.125
always keep our eye out for pension scams.

752
00:30:56.875 --> 00:30:58.205
Well, I think we've packed quite

753
00:30:58.205 --> 00:30:59.245
a lot in, do you think we should be?

754
00:30:59.245 --> 00:31:00.565
I think so. Is it time to let Johnny

755
00:31:00.565 --> 00:31:01.605
back into this studio? I think

756
00:31:01.765 --> 00:31:02.765
I think so, yes. Come on,

757
00:31:02.765 --> 00:31:03.125

758
00:31:03.585 --> 00:31:04.585
Here's Johnny.

759
00:31:04.935 --> 00:31:07.045
Hello. Hello. Thank you for that.

760
00:31:07.245 --> 00:31:10.765
I, I've found a seat next to Rachel, so Hello Rachel. Hello.

761
00:31:10.825 --> 00:31:13.325
Taking, not even going back into the studio I

762
00:31:13.325 --> 00:31:14.325
Taken. Yeah, it's taken over

763
00:31:14.325 --> 00:31:15.085
my desk now.

764
00:31:15.895 --> 00:31:17.325
Sorry about that. Is that good?

765
00:31:17.325 --> 00:31:18.725
Is that good or bad, Rachel? Um,

766
00:31:18.795 --> 00:31:19.795
I'll let you know at the end.

767
00:31:20.695 --> 00:31:23.325
Thank you. Thank you for that abuse. Right.

768
00:31:23.505 --> 00:31:25.285
So, um, I'm joined by Rachel.

769
00:31:25.665 --> 00:31:27.405
Um, Rachel handles all the

770
00:31:27.565 --> 00:31:28.765
questions here, pension awareness.

771
00:31:28.785 --> 00:31:31.125
So all the questions, um, that you've been putting in the,

772
00:31:31.225 --> 00:31:34.445
uh, chat, um, and question section alongside our screen.

773
00:31:34.505 --> 00:31:36.325
Now, that's what you look after, isn't it Rachel?

774
00:31:36.845 --> 00:31:38.445
I do, I'm trying my best to look.

775
00:31:38.445 --> 00:31:39.885
There's lots of questions coming in,

776
00:31:39.885 --> 00:31:41.085
so I hope you guys are ready.

777
00:31:41.615 --> 00:31:43.605
We're on stand. There's lots of it. We're on standby. Yes.

778
00:31:43.865 --> 00:31:46.525
Be be. Before we start that though, I just wanted to, um,

779
00:31:46.675 --> 00:31:49.845
I've, I've got some things Rachel, I wrote from that show.

780
00:31:49.845 --> 00:31:50.925
I thought it was a brilliant show.

781
00:31:51.045 --> 00:31:52.765
I thought it was a really, really good show.

782
00:31:52.765 --> 00:31:55.925
Very informative. Yeah. Um, so not too long ago,

783
00:31:55.925 --> 00:31:58.725
maybe a month ago, two months ago, I got a call

784
00:31:59.065 --> 00:32:01.325
and you never think you're gonna get a scam call, do you?

785
00:32:01.545 --> 00:32:03.005
Me and Rachel would do these shows. True.

786
00:32:03.005 --> 00:32:04.805
Quite a lot of these shows, um, through the year.

787
00:32:05.185 --> 00:32:07.565
Um, and we've done lots of shows on scamming,

788
00:32:07.565 --> 00:32:11.325
but never had a call Two months ago I had a call,

789
00:32:11.595 --> 00:32:13.965
knew exactly what to do, I just hung up, put down.

790
00:32:14.025 --> 00:32:16.765
But it just shows you show it was a scam. I think it was.

791
00:32:16.765 --> 00:32:18.885
It wasn't my mom. It was a scam. It was a scam.

792
00:32:19.105 --> 00:32:22.645
No, it was, I, well I think it was a scam. But anyway,

793
00:32:23.115 --> 00:32:24.965
What I would say to you on that, Johnny, is

794
00:32:24.965 --> 00:32:27.285
that it's very unlikely you are going

795
00:32:27.565 --> 00:32:30.165
to be direct marketer called outta the

796
00:32:30.165 --> 00:32:31.365
blue about your pension.

797
00:32:31.545 --> 00:32:34.085
So if you are, that is always a pretty good,

798
00:32:34.275 --> 00:32:36.685
well it should ring some alarm bells with you as well.

799
00:32:36.755 --> 00:32:39.685
Yeah. Just on the, on the, on the, um, on the subject

800
00:32:39.745 --> 00:32:40.765
of scams as well.

801
00:32:41.025 --> 00:32:43.925
The other thing to say is if people are rushing you

802
00:32:44.225 --> 00:32:45.965
to make a decision that there's a degree

803
00:32:45.965 --> 00:32:47.565
of urgency on what always a warning sign.

804
00:32:47.585 --> 00:32:48.845
Always a warning sign. Always warning

805
00:32:48.845 --> 00:32:49.845
Sign. Yeah. Yeah, yeah.

806
00:32:49.845 --> 00:32:51.085
You did the right thing there Johnny.

807
00:32:51.145 --> 00:32:52.205
By, yeah, by hanging up.

808
00:32:52.415 --> 00:32:54.725
Great. Great. Um, so I,

809
00:32:54.725 --> 00:32:57.325
and I like these, um, little sayings that you've got.

810
00:32:57.545 --> 00:32:59.685
Um, jargon, jargon alert.

811
00:33:00.115 --> 00:33:02.125
Yeah, I that dragon alert, we're gonna steal that one.

812
00:33:02.425 --> 00:33:05.565
And, uh, F Factor. Love that. Um, so I

813
00:33:05.565 --> 00:33:06.565
Trade marking that one.

814
00:33:07.505 --> 00:33:09.085
Th I have three pensions.

815
00:33:10.025 --> 00:33:11.925
Um, well now two, I've actually combined,

816
00:33:12.125 --> 00:33:13.845
I did a combined Right, okay.

817
00:33:14.145 --> 00:33:16.525
Um, but one of my pensions, you,

818
00:33:16.545 --> 00:33:18.765
you mentioned about looking at the kind of the small print

819
00:33:18.765 --> 00:33:20.805
and the, the bits and bobs on, on the Mm-Hmm.

820
00:33:21.305 --> 00:33:24.405
The pension and one of my pensions, it was

821
00:33:24.435 --> 00:33:26.365
with Aveva I believe.

822
00:33:26.425 --> 00:33:27.845
And it said that there

823
00:33:27.845 --> 00:33:30.085
would, I'm probably gonna say something. You had

824
00:33:30.085 --> 00:33:31.525
A protected retirement age.

825
00:33:31.675 --> 00:33:35.205
Yeah, 55. So I was gonna, it worked well, wanted

826
00:33:35.205 --> 00:33:36.485
to get my money as quick as I can.

827
00:33:36.865 --> 00:33:39.645
So, um, I didn't move that, didn't do that.

828
00:33:39.745 --> 00:33:41.685
So that, that's really good. I'm ignoring that.

829
00:33:42.065 --> 00:33:45.965
Um, also you spoke about apps, I've,

830
00:33:47.165 --> 00:33:48.925
I feel like I've got pensions with everybody.

831
00:33:48.965 --> 00:33:51.365
I haven't, but funny enough I have got another pension.

832
00:33:52.065 --> 00:33:56.285
Um, I had an, had another pension with Royal London. Okay.

833
00:33:56.505 --> 00:33:58.525
And this might be another thing, a thing of like

834
00:33:58.985 --> 00:34:00.205
Ask off Yay.

835
00:34:00.465 --> 00:34:02.085
But there's another, but when I combined it,

836
00:34:02.085 --> 00:34:03.325
I lost the, lost the app.

837
00:34:03.545 --> 00:34:05.525
Um, but the other provider I've got has got an app,

838
00:34:05.525 --> 00:34:06.525
but I had a fantastic app.

839
00:34:06.525 --> 00:34:08.805
But when I had the Royal London app on my

840
00:34:08.805 --> 00:34:10.725
phone, I checked all the time.

841
00:34:10.885 --> 00:34:13.165
I felt, yeah, I get a statement once a year

842
00:34:13.185 --> 00:34:16.205
and didn't really open the, the letter. Um, we'll ignore

843
00:34:16.205 --> 00:34:17.205
That bit. Sorry,

844
00:34:17.205 --> 00:34:20.405
sorry. But when I had the app it made me feel

845
00:34:20.465 --> 00:34:21.805
closer to my money.

846
00:34:21.845 --> 00:34:22.725
I think that's, it makes you, it's more

847
00:34:22.845 --> 00:34:23.525
tangible makes feel like

848
00:34:23.525 --> 00:34:24.685
It's a bank account, doesn't It?

849
00:34:24.715 --> 00:34:28.005
Exactly, exactly. Um, so apps really, really cold. Yeah.

850
00:34:28.065 --> 00:34:29.405
Um, and I definitely

851
00:34:29.405 --> 00:34:30.405
Make it easier for you.

852
00:34:30.605 --> 00:34:32.725
I mean, in a way, you know, pensions aren't bank accounts

853
00:34:32.725 --> 00:34:34.445
and some people buy checking kind of every day.

854
00:34:34.445 --> 00:34:35.765
It might spook them slightly. Yeah.

855
00:34:35.845 --> 00:34:37.685
'cause you know, pensions are long term investments,

856
00:34:37.905 --> 00:34:39.885
but I've also got, got the app

857
00:34:40.025 --> 00:34:42.045
and I do check mine quite frequently

858
00:34:42.145 --> 00:34:44.525
and it doesn't, you know, it's kind of, I know it's invested

859
00:34:44.525 --> 00:34:47.325
for the long term but like you, I quite like feeling

860
00:34:47.325 --> 00:34:49.525
that tangibility and feeling connected to it.

861
00:34:49.665 --> 00:34:51.485
So, you know, definitely works for some people.

862
00:34:52.205 --> 00:34:54.445
Brilliant. Well I'm getting kicked under the table

863
00:34:54.505 --> 00:34:56.325
by Rachel, so get on with the questions

864
00:34:56.325 --> 00:34:58.845
because I'm getting, so, um, Rachel,

865
00:34:59.255 --> 00:35:00.485
let's go with the first question.

866
00:35:01.035 --> 00:35:02.365
Okay, thank you. Yeah, no,

867
00:35:02.365 --> 00:35:03.605
we've got so many to get through.

868
00:35:03.705 --> 00:35:06.325
So Johnny take a breather.

869
00:35:06.345 --> 00:35:08.285
You can have a little rest now let, let me fire away

870
00:35:08.285 --> 00:35:09.405
with these questions guys.

871
00:35:09.405 --> 00:35:11.805
Have a sip of water. 'cause I'm gonna try see if I can get

872
00:35:11.805 --> 00:35:13.125
through as many as possible

873
00:35:13.425 --> 00:35:15.445
and I just wanna say to everyone, there's been a lot

874
00:35:15.445 --> 00:35:16.605
of questions, um,

875
00:35:17.185 --> 00:35:20.045
and there's some quite specific to people's circumstances,

876
00:35:20.305 --> 00:35:22.765
so I've kind of grouped them together to keep them generic.

877
00:35:22.825 --> 00:35:24.485
So do you know, please bear with me.

878
00:35:24.505 --> 00:35:26.405
I'm doing my best to get through them all so that,

879
00:35:26.425 --> 00:35:27.885
anyway, let's get started.

880
00:35:28.195 --> 00:35:31.405
Okay. Um, so a lot of these themes you've touched on,

881
00:35:31.405 --> 00:35:32.885
but I'm just gonna go through the ones,

882
00:35:32.905 --> 00:35:34.165
the main themes that I'm getting.

883
00:35:34.265 --> 00:35:35.485
So we spoke about charges.

884
00:35:36.225 --> 00:35:38.125
Um, so one of the questions is,

885
00:35:38.125 --> 00:35:40.045
do different providers charge different fees?

886
00:35:41.345 --> 00:35:44.485
Um, I'll take that if you like. Yes, absolutely they do.

887
00:35:44.905 --> 00:35:48.445
Um, so particularly if it's personal pensions,

888
00:35:48.445 --> 00:35:50.845
like Sarah mentioned, they have different charge rates,

889
00:35:50.875 --> 00:35:53.285
they have different points at which tiering

890
00:35:53.285 --> 00:35:54.845
of charges might alter.

891
00:35:54.985 --> 00:35:57.085
But there, what is one degree

892
00:35:57.085 --> 00:36:01.045
of commonality across all workplace pension providers is

893
00:36:01.045 --> 00:36:03.725
that the default fund must have a charge

894
00:36:03.785 --> 00:36:06.405
of 0.75% or less.

895
00:36:06.905 --> 00:36:10.045
So that is one of the great things about workplace pensions.

896
00:36:10.105 --> 00:36:11.605
As I mentioned, they're transparent

897
00:36:11.785 --> 00:36:13.725
and you know that if you stay in that default fund,

898
00:36:13.725 --> 00:36:15.445
you're not going to be paying more than that.

899
00:36:15.825 --> 00:36:17.365
So that's, I mean, most people probably know,

900
00:36:17.365 --> 00:36:19.285
but the default one is the one that you are kind

901
00:36:19.285 --> 00:36:21.565
of plunked into when you get automatically enrolled.

902
00:36:21.785 --> 00:36:24.405
And many people, it's designed to be, you know, a a,

903
00:36:24.565 --> 00:36:26.725
a good fund for the majority of scheme members

904
00:36:26.865 --> 00:36:28.085
and many people stay in it.

905
00:36:28.345 --> 00:36:32.005
So although as Justin said it's a maximum of north 0.75%,

906
00:36:32.095 --> 00:36:33.645
there could still be some variation

907
00:36:33.645 --> 00:36:35.765
because a number of providers will charge less than that.

908
00:36:35.825 --> 00:36:37.925
So that's the two ways that charges can vary.

909
00:36:39.015 --> 00:36:41.925
Super, thank you. Um, this is quite a popular one.

910
00:36:41.945 --> 00:36:43.045
I'm seeing this from a lot of people.

911
00:36:43.345 --> 00:36:45.165
Um, so is there a minimum amount

912
00:36:45.355 --> 00:36:46.765
that anybody needs in their pension

913
00:36:46.765 --> 00:36:47.885
to be able to transfer it?

914
00:36:47.885 --> 00:36:50.605
Quite a lot of people say they've got less than 500 pounds

915
00:36:50.665 --> 00:36:52.445
and they've been told that they

916
00:36:52.445 --> 00:36:53.685
can't transfer it for that reason.

917
00:36:53.865 --> 00:36:54.865
Is that correct?

918
00:36:55.845 --> 00:36:59.645
I think that would possibly vary from provider to provider

919
00:36:59.835 --> 00:37:02.925
that some providers will have a, a minimum amount

920
00:37:02.925 --> 00:37:05.325
that they will accept for a pension transfer.

921
00:37:05.665 --> 00:37:08.285
Um, so that might be the case in some instances,

922
00:37:08.505 --> 00:37:10.605
but it's likely to be quite low.

923
00:37:10.765 --> 00:37:12.325
I appreciate 500 pounds.

924
00:37:12.705 --> 00:37:13.725
Um, might be the case,

925
00:37:13.865 --> 00:37:16.445
but there isn't normally a particularly low minimum.

926
00:37:16.805 --> 00:37:19.525
I think once upon a time our might have been a thousand

927
00:37:19.525 --> 00:37:20.885
or 2000 or something like that.

928
00:37:21.275 --> 00:37:23.325
Yeah, yeah. As I say, I think it is something

929
00:37:23.325 --> 00:37:24.725
that probably does, does vary bit from

930
00:37:25.005 --> 00:37:26.445
provider to provide us.

931
00:37:26.445 --> 00:37:29.205
So for somebody who has a very small pension, um,

932
00:37:29.275 --> 00:37:31.765
they might find it harder to transfer it.

933
00:37:31.985 --> 00:37:34.325
Um, if it is a sort of low amount, maybe you had a job

934
00:37:34.325 --> 00:37:36.005
for a short time or you're in the pension scheme

935
00:37:36.005 --> 00:37:38.245
for a short time and you've not then added to

936
00:37:38.245 --> 00:37:39.445
that pension since 'cause you're

937
00:37:39.445 --> 00:37:40.525
name with a, a new employer.

938
00:37:40.985 --> 00:37:42.965
But as I say, it's not necessarily something

939
00:37:42.965 --> 00:37:46.125
that all pension providers will have the same flaw.

940
00:37:46.185 --> 00:37:48.885
So that might be that some have a higher or lower one.

941
00:37:49.415 --> 00:37:51.885
Great stuff. Yeah. So one to check with your provider.

942
00:37:52.025 --> 00:37:55.365
Indeed. Great stuff. Thank you. Okay, next question then.

943
00:37:55.825 --> 00:37:58.005
Um, this is quite a good one.

944
00:37:58.185 --> 00:38:02.045
If you, um, if you've joined a new new pension scheme, say

945
00:38:02.045 --> 00:38:03.205
for instance you've joined a new employer,

946
00:38:03.425 --> 00:38:06.005
is there a certain timeframe that you, you have

947
00:38:06.005 --> 00:38:08.045
to trans if you wanted to transfer that, you have

948
00:38:08.045 --> 00:38:09.925
to transfer that pension into

949
00:38:09.925 --> 00:38:11.245
another pension if you wanted to?

950
00:38:11.665 --> 00:38:13.365
No, I'm sorry. Would you like to,

951
00:38:13.365 --> 00:38:15.285
to go ahead or I happily will. Well I,

952
00:38:15.285 --> 00:38:16.645
I'll say 'cause this is sort of what you were talking

953
00:38:16.645 --> 00:38:20.245
about earlier on, where you will be contacted by um, well,

954
00:38:20.245 --> 00:38:24.245
so if, if you have joined your new employ employer, then uh,

955
00:38:24.265 --> 00:38:25.365
no there's not a timeframe.

956
00:38:25.945 --> 00:38:28.605
If your employer's pension has moved from providers,

957
00:38:28.875 --> 00:38:30.805
then you might get contacted as John, uh,

958
00:38:30.805 --> 00:38:33.605
Justin was explaining earlier on and offered

959
00:38:33.665 --> 00:38:36.445
or invited to transfer your old pensions

960
00:38:36.445 --> 00:38:37.685
to this new, um, provider.

961
00:38:37.785 --> 00:38:41.045
And that will normally have a, a timeframe, as Justin said,

962
00:38:41.115 --> 00:38:42.405
they're not advising you,

963
00:38:42.405 --> 00:38:44.005
they're just giving you the, the offer.

964
00:38:44.545 --> 00:38:46.365
Um, and normally you'll have to kind

965
00:38:46.365 --> 00:38:48.005
of move within a certain number of months,

966
00:38:48.105 --> 00:38:51.965
but if it's just signing up with your new employer, um,

967
00:38:52.355 --> 00:38:53.445
then it's different, isn't it?

968
00:38:53.445 --> 00:38:56.165
Because I mean I, I've, you know, I transfer my pensions.

969
00:38:56.165 --> 00:38:57.885
I've been with my employer for a couple of years

970
00:38:57.885 --> 00:38:59.605
and it actually took me a bit of time to do it.

971
00:38:59.605 --> 00:39:02.045
Yeah. But there wasn't a cutoff date. I could still do that.

972
00:39:02.045 --> 00:39:04.045
Move my pensions that I had from previous work.

973
00:39:04.565 --> 00:39:07.205
Absolutely. Yeah, you can, you can at any point you can,

974
00:39:07.205 --> 00:39:09.445
you can move your, your pensions across.

975
00:39:09.825 --> 00:39:11.685
Um, yeah, there's not a time.

976
00:39:12.025 --> 00:39:13.645
Yes when you get that, um,

977
00:39:14.035 --> 00:39:15.925
that offer from the new pension provider,

978
00:39:15.985 --> 00:39:18.045
it might have some sort of set timeframe for it,

979
00:39:18.105 --> 00:39:20.205
but it's nothing stopping you being able to

980
00:39:20.765 --> 00:39:22.125
transfer later on if you want to.

981
00:39:23.005 --> 00:39:25.635
Great stuff. Thank you. Okay. This is another big one.

982
00:39:26.015 --> 00:39:28.515
Um, if you're not sure you've got other pensions,

983
00:39:28.715 --> 00:39:29.995
I know we mentioned this briefly before.

984
00:39:29.995 --> 00:39:31.995
Mm-Hmm. Um, how do you track them down?

985
00:39:32.905 --> 00:39:34.675
It's, it is a bit of a sort of chicken and egg question.

986
00:39:34.675 --> 00:39:35.675
It's a really good question.

987
00:39:36.155 --> 00:39:38.355
I mean, I think you have to have a bit of an inkling

988
00:39:38.425 --> 00:39:39.795
that you may have had a pension

989
00:39:40.015 --> 00:39:41.675
or you know, you've had a job

990
00:39:41.675 --> 00:39:44.075
that you aren't sure whether you had a pension or not.

991
00:39:44.595 --> 00:39:48.075
I mean, my, my thought on this is it's really worth seeing

992
00:39:48.075 --> 00:39:49.115
if you've got lost pensions

993
00:39:49.315 --> 00:39:50.675
'cause you've got absolutely nothing to lose

994
00:39:51.095 --> 00:39:53.275
and you've got potentially thousands to gain.

995
00:39:53.455 --> 00:39:55.555
So, um, obviously we had the address

996
00:39:55.615 --> 00:39:57.995
of the government website on screen earlier on.

997
00:39:58.345 --> 00:39:59.595
It's a free to use service.

998
00:39:59.775 --> 00:40:03.115
Now the only caveat is you would need a bit of information.

999
00:40:03.215 --> 00:40:05.115
So you don't necessarily need to know

1000
00:40:05.115 --> 00:40:06.915
who the pension provider is or was,

1001
00:40:07.335 --> 00:40:09.635
but if you don't know that, even the old name

1002
00:40:09.635 --> 00:40:11.875
of the pension provider, 'cause it may have, you know,

1003
00:40:11.875 --> 00:40:13.035
changed or, or merged.

1004
00:40:13.565 --> 00:40:16.075
You'd either need to know your employer's current name

1005
00:40:16.575 --> 00:40:17.755
or an old name.

1006
00:40:17.775 --> 00:40:19.835
So maybe you worked for them 20, 30 years ago

1007
00:40:19.975 --> 00:40:20.915
and they were called, you

1008
00:40:20.915 --> 00:40:22.235
know, blogs, machines or something.

1009
00:40:22.465 --> 00:40:25.035
They may have changed name or been taken over three

1010
00:40:25.035 --> 00:40:28.235
or four times as long as you knew that old name.

1011
00:40:28.305 --> 00:40:30.755
That would be enough to be a starting point.

1012
00:40:30.775 --> 00:40:33.035
You pop that into the government, um,

1013
00:40:33.035 --> 00:40:34.195
pension tracing service.

1014
00:40:34.575 --> 00:40:36.475
And then what happens, because I've, I've done this myself.

1015
00:40:36.935 --> 00:40:38.915
The name of the current pension provider

1016
00:40:38.935 --> 00:40:41.115
or pension scheme, the contact details come up.

1017
00:40:41.455 --> 00:40:43.555
So I would say give it a go

1018
00:40:43.555 --> 00:40:45.315
because if if there isn't a pension pot

1019
00:40:45.315 --> 00:40:47.635
with your name on it, you are not gonna get money

1020
00:40:47.635 --> 00:40:48.755
but you're not gonna lose anything.

1021
00:40:49.175 --> 00:40:50.475
But they, you're got worse off are you?

1022
00:40:50.615 --> 00:40:51.995
But there could be, and I mean

1023
00:40:51.995 --> 00:40:53.955
genuinely could be thousands of pounds. So could do

1024
00:40:53.955 --> 00:40:54.955
It. Can I just add something onto that

1025
00:40:54.955 --> 00:40:55.275
as well

1026
00:40:55.735 --> 00:40:59.275
and even if you have um, an inkling of

1027
00:40:59.295 --> 00:41:00.835
of employers that you might have worked for.

1028
00:41:00.855 --> 00:41:02.515
Yes. That's a great place to chase up.

1029
00:41:02.615 --> 00:41:05.955
But remember Sarah mentioned earlier on that the, um,

1030
00:41:06.135 --> 00:41:09.155
the pension dashboard is on the way as well

1031
00:41:09.175 --> 00:41:11.915
and that's due to be with us in two years time

1032
00:41:12.175 --> 00:41:13.955
and that's exactly what that's going to do.

1033
00:41:13.985 --> 00:41:18.675
It's going to identify all of the pension, um, uh, uh,

1034
00:41:18.725 --> 00:41:21.115
plans that you have, including

1035
00:41:21.815 --> 00:41:23.435
the state pension as well, isn't it?

1036
00:41:23.435 --> 00:41:25.675
Yeah, yeah. Yes. Is gonna be on there. So, um, alright.

1037
00:41:25.855 --> 00:41:28.915
Not available just at the moment, but not too far away is

1038
00:41:28.915 --> 00:41:29.915
It? But in the meantime definitely

1039
00:41:29.915 --> 00:41:31.435
worth having a check on the

1040
00:41:31.455 --> 00:41:34.165
gov, um, UK the pension tracing service website.

1041
00:41:35.575 --> 00:41:36.805
Great stuff. Thank you.

1042
00:41:36.945 --> 00:41:38.445
And actually that was one of my questions

1043
00:41:38.445 --> 00:41:39.605
Justin, so thanks for that.

1044
00:41:39.705 --> 00:41:41.685
The dashboard, um, that we mentioned earlier,

1045
00:41:41.685 --> 00:41:43.245
people are asking when is it coming?

1046
00:41:43.385 --> 00:41:45.765
So two years I heard you say approximately.

1047
00:41:46.045 --> 00:41:47.565
'cause it's been in the making for a long time,

1048
00:41:47.565 --> 00:41:48.645
hasn't it? It has

1049
00:41:48.645 --> 00:41:50.045
Been in the making for a while

1050
00:41:50.105 --> 00:41:53.085
and obviously it's, it's a massive undertaking to be able

1051
00:41:53.085 --> 00:41:54.605
to have everyone's pensions details.

1052
00:41:54.785 --> 00:41:57.205
So it is a, a challenging thing to do,

1053
00:41:57.225 --> 00:41:58.885
but that's when we're being told at the

1054
00:41:58.885 --> 00:41:59.965
moment, isn't it? Yeah, yeah.

1055
00:42:00.105 --> 00:42:02.045
So yeah, a couple of years-ish from now, as you say,

1056
00:42:02.105 --> 00:42:04.325
it has been, its, its launch has been delayed a couple

1057
00:42:04.325 --> 00:42:06.685
times, but, but it is a, it is a huge undertaking

1058
00:42:06.745 --> 00:42:10.405
but I think it will definitely make life so much easier

1059
00:42:10.585 --> 00:42:12.085
for people because you will just have

1060
00:42:12.085 --> 00:42:14.005
that instant visibility of what you have

1061
00:42:14.545 --> 00:42:17.005
and crucially with the state pension as well and we know,

1062
00:42:17.205 --> 00:42:19.565
'cause we also carry out research into the state pension

1063
00:42:20.065 --> 00:42:22.925
and in fact some research we carried out very recently using

1064
00:42:23.125 --> 00:42:25.165
DWP figures show that only half

1065
00:42:25.185 --> 00:42:28.725
of pensioners get the full new state pension amount.

1066
00:42:29.035 --> 00:42:31.005
Many people are unaware they're not on track

1067
00:42:31.005 --> 00:42:32.125
to get the full state pension.

1068
00:42:32.385 --> 00:42:34.285
And again, the pensions dashboard will help with that.

1069
00:42:36.605 --> 00:42:39.005
Brilliant, thank you. Okay, next question then.

1070
00:42:39.065 --> 00:42:40.965
Um, we, we've touched on this briefly.

1071
00:42:41.125 --> 00:42:44.445
I think you mentioned this Sarah, practically transferring a

1072
00:42:44.445 --> 00:42:47.445
pension or combining a pension, is it difficult to do?

1073
00:42:47.585 --> 00:42:50.605
Is it a case of you just get in touch with your provider

1074
00:42:50.705 --> 00:42:52.645
and they'll do most of the legwork for you?

1075
00:42:53.465 --> 00:42:55.525
Or is it a bit more arduous than that?

1076
00:42:56.435 --> 00:42:59.245
Yeah, so I mean it shouldn't be difficult.

1077
00:42:59.275 --> 00:43:00.325
It's not that there's gonna be

1078
00:43:00.325 --> 00:43:01.445
a lot of steps for you to take.

1079
00:43:01.665 --> 00:43:03.405
It can sometimes take some time

1080
00:43:03.465 --> 00:43:05.845
and that varies again from provider to provider.

1081
00:43:06.185 --> 00:43:08.125
And it might vary in terms of whether you've got,

1082
00:43:08.125 --> 00:43:10.365
you're bringing together a handful of pensions

1083
00:43:10.425 --> 00:43:12.565
or you are just bringing, moving one into the other

1084
00:43:12.665 --> 00:43:14.605
and the kind of pensions you've got if they're

1085
00:43:14.755 --> 00:43:15.925
very old ones and so on.

1086
00:43:16.145 --> 00:43:18.605
So it, it, I mean definitely it shouldn't be a barrier

1087
00:43:18.605 --> 00:43:20.645
to you transferring if you think it's right for you,

1088
00:43:21.265 --> 00:43:23.885
but it's not like, um, so for example,

1089
00:43:23.885 --> 00:43:25.365
if you were going switch your bank account,

1090
00:43:25.365 --> 00:43:27.925
there's this current account switch service guarantee,

1091
00:43:27.925 --> 00:43:30.005
which says it'll be done within seven working days.

1092
00:43:30.475 --> 00:43:32.645
It's not necessarily like that could take a bit longer,

1093
00:43:33.065 --> 00:43:35.485
but it definitely shouldn't be something that's, you know,

1094
00:43:35.485 --> 00:43:36.845
it's something that individuals can do

1095
00:43:36.865 --> 00:43:38.085
if you want to transfer your pension.

1096
00:43:38.655 --> 00:43:40.045
Agree with that wholeheartedly.

1097
00:43:40.085 --> 00:43:42.685
I think Sarah touched on the key point there.

1098
00:43:43.145 --> 00:43:44.845
The only time is likely to be,

1099
00:43:44.845 --> 00:43:47.885
if they're very old contracts, that can sometimes, um,

1100
00:43:47.915 --> 00:43:50.165
take a little bit longer, but by

1101
00:43:50.165 --> 00:43:52.525
and large it should be relatively straightforward.

1102
00:43:54.295 --> 00:43:55.525
Great stuff. Thank you. I'm,

1103
00:43:55.525 --> 00:43:57.365
I'm gonna put in quickly here, we've got two more

1104
00:43:57.365 --> 00:43:58.525
minutes and two more questions.

1105
00:43:58.755 --> 00:44:01.245
Okay. Let's do Talk quickly. Justin,

1106
00:44:01.945 --> 00:44:02.945
Go. Let's do it.

1107
00:44:02.945 --> 00:44:03.645
Okay, I'll,

1108
00:44:03.675 --> 00:44:05.685
I'll the most popular last two then.

1109
00:44:05.745 --> 00:44:08.405
Um, so I think I'm gonna go for this one.

1110
00:44:08.705 --> 00:44:10.485
Can you transfer an annuity?

1111
00:44:12.265 --> 00:44:15.565
Um, don't get asked that very often. No.

1112
00:44:15.905 --> 00:44:19.325
Um, we've stumped. Yes. Generally not. I don't

1113
00:44:19.325 --> 00:44:20.325
Think. I don't, no, I, um,

1114
00:44:20.325 --> 00:44:22.085
yeah, I don't think you can.

1115
00:44:22.185 --> 00:44:25.205
But once you've got the annuity is, it's a contract.

1116
00:44:25.265 --> 00:44:26.445
You've, you've made that decision.

1117
00:44:26.515 --> 00:44:29.125
It's basically a, um, a kind of contract for life, isn't it?

1118
00:44:29.125 --> 00:44:30.965
Well remember there was some talk about a secondary

1119
00:44:31.045 --> 00:44:33.285
annuity market, but let's, let's say no by

1120
00:44:33.285 --> 00:44:34.925
and large it's not a common thing people do.

1121
00:44:35.035 --> 00:44:38.565
Yeah. Lovely. Thank you. Okay, uh, final one then.

1122
00:44:38.625 --> 00:44:42.045
Um, I'm going to go for, um,

1123
00:44:42.935 --> 00:44:44.645
quite a few people are asking this one.

1124
00:44:44.745 --> 00:44:48.085
Um, is it worth seeing a financial advisor on this topic

1125
00:44:48.345 --> 00:44:49.885
or can you do it yourself?

1126
00:44:51.665 --> 00:44:53.965
I'd say it's a, it's a, it's a really good question.

1127
00:44:54.035 --> 00:44:55.285
It's actually quite a big question

1128
00:44:55.285 --> 00:44:57.365
that I think you need about, you know, five, 10 minutes.

1129
00:44:57.375 --> 00:44:58.565
Don't worry, we're not gonna take that.

1130
00:44:59.325 --> 00:45:02.525
I, I think the short answer is there are circum some

1131
00:45:02.525 --> 00:45:04.725
circumstances where you have to take financial advice.

1132
00:45:04.855 --> 00:45:06.485
There are lots of circumstances

1133
00:45:06.495 --> 00:45:09.165
where a financial advisor can really add value,

1134
00:45:09.705 --> 00:45:12.125
but for some people especially they've got quite small

1135
00:45:12.125 --> 00:45:14.725
pension pots, they may not need to see a financial advisor.

1136
00:45:14.745 --> 00:45:16.645
And in fact they might find it's not

1137
00:45:16.645 --> 00:45:17.845
quite so cost effective.

1138
00:45:17.865 --> 00:45:20.405
So it is up to the circumstances you are in,

1139
00:45:20.825 --> 00:45:22.725
but a financial advisor can, you know,

1140
00:45:22.725 --> 00:45:24.605
they can be in value in terms invaluable in terms

1141
00:45:24.605 --> 00:45:25.725
of the insights that they bring.

1142
00:45:26.465 --> 00:45:28.765
Yes, I think many people would be surprised at

1143
00:45:28.765 --> 00:45:31.605
how much benefit they find from seeing a financial advisor

1144
00:45:31.875 --> 00:45:34.325
despite the fact that not very many people do.

1145
00:45:34.325 --> 00:45:36.765
Yeah. But hopefully we'll see more people getting advice.

1146
00:45:38.365 --> 00:45:40.565
Brilliant, brilliant. So thank you Rachel.

1147
00:45:40.625 --> 00:45:42.045
Before I wrap up, I'd just like to go

1148
00:45:42.045 --> 00:45:45.045
and say big thank you to Sarah and Justin.

1149
00:45:45.515 --> 00:45:47.565
Want that a fantastic show. Rachel,

1150
00:45:47.785 --> 00:45:48.785
It was fantastic. It

1151
00:45:48.785 --> 00:45:50.365
was so informative. Thank you.

1152
00:45:50.465 --> 00:45:52.765
And I know we didn't get big round applause, we didn't get

1153
00:45:52.765 --> 00:45:54.565
through everyone's questions so I apologize,

1154
00:45:55.105 --> 00:45:58.605
but we have got more sessions so do come along and we'll try

1155
00:45:58.605 --> 00:46:00.405
and get in as many questions as we can. And

1156
00:46:00.585 --> 00:46:01.585
I'm gonna follow up with that. Rachel

1157
00:46:01.585 --> 00:46:04.005
is completely right as afternoon,

1158
00:46:04.135 --> 00:46:05.845
we've got two more shows.

1159
00:46:06.055 --> 00:46:08.005
We've got Agon who will be in the studio

1160
00:46:08.545 --> 00:46:12.245
at 1230 till one 15 talking about financial wellbeing,

1161
00:46:12.245 --> 00:46:14.405
finding the balance between money and mindset.

1162
00:46:14.735 --> 00:46:16.605
Great show. We're gonna have some fun

1163
00:46:16.605 --> 00:46:17.765
in, uh, fun with that one.

1164
00:46:18.065 --> 00:46:20.325
And, um, also we're joined by Money Helper.

1165
00:46:20.385 --> 00:46:23.685
Um, this afternoon at two 30 I'll be joined

1166
00:46:23.745 --> 00:46:26.565
by Jackie from Money Helper in the studio.

1167
00:46:27.225 --> 00:46:29.645
Um, so we look forward to seeing you then.

1168
00:46:29.645 --> 00:46:31.885
If you're not booked onto them, get booked onto them

1169
00:46:32.465 --> 00:46:33.965
and thank you for joining us.

1170
00:46:33.995 --> 00:46:36.525
What a great show. Bye everybody. Thanks.

0
00:00:07.925 --> 00:00:08.275
Hello?

1
00:00:08.525 --> 00:00:11.515
Hello. Can you see me? I'm in a different position today.

2
00:00:11.975 --> 00:00:13.755
I'm not on the stage of being kicked off,

3
00:00:13.755 --> 00:00:15.155
and I'm joined by Rachel.

4
00:00:15.775 --> 00:00:16.875
How are you? How are

5
00:00:16.875 --> 00:00:17.875
You doing? Thanks. Being

6
00:00:17.875 --> 00:00:19.075
made in my space

7
00:00:19.125 --> 00:00:20.125
Again. I'm, I'm getting told off

8
00:00:20.125 --> 00:00:21.235
when I get put here,

9
00:00:21.235 --> 00:00:22.835
but anyway, we're on the hot desk

10
00:00:22.835 --> 00:00:25.195
where all the questions are gonna be firing,

11
00:00:25.455 --> 00:00:26.635
um, to us from you.

12
00:00:26.815 --> 00:00:29.395
But anyway, before we get started, hello everyone.

13
00:00:29.535 --> 00:00:31.395
I'm Johnny. This is Rachel. Hello.

14
00:00:31.405 --> 00:00:32.995
We're from Pension Geeks, so creators

15
00:00:33.175 --> 00:00:36.235
of the Official Pension awareness, um, campaign.

16
00:00:36.855 --> 00:00:40.755
And today we've got a great show for you how to get ready

17
00:00:40.775 --> 00:00:44.715
for the retirement you want hosted by Royal London.

18
00:00:45.295 --> 00:00:47.755
But before we get started, there's a few things

19
00:00:47.755 --> 00:00:51.755
that I wanted to tell you about, show the, uh, brilliant,

20
00:00:51.855 --> 00:00:53.715
um, we've got a brilliant website.

21
00:00:53.895 --> 00:00:56.755
So a website that you're on now, we've created just

22
00:00:56.755 --> 00:00:59.675
for you pension awareness day.com.

23
00:00:59.775 --> 00:01:03.715
So if you're not booked onto the shows later on today,

24
00:01:03.715 --> 00:01:05.315
we've got a show with with Aon.

25
00:01:05.315 --> 00:01:07.275
We've got shows again tomorrow with Royal London.

26
00:01:07.615 --> 00:01:08.755
If you're not booked onto them,

27
00:01:09.105 --> 00:01:10.315
make sure you get booked onto them.

28
00:01:10.375 --> 00:01:11.995
You can do it via this website.

29
00:01:11.995 --> 00:01:13.075
There's a timetable

30
00:01:13.135 --> 00:01:16.155
and a booking form where you can go and register.

31
00:01:16.905 --> 00:01:19.115
Also, if you've missed any shows,

32
00:01:19.215 --> 00:01:21.235
if you've missed a previous show with Royal London,

33
00:01:21.615 --> 00:01:23.435
is it a good idea to transfer a pension?

34
00:01:23.695 --> 00:01:25.275
You can go to this website as well

35
00:01:25.275 --> 00:01:26.995
and you can watch it in the catch up

36
00:01:26.995 --> 00:01:28.235
area, which is fantastic.

37
00:01:28.895 --> 00:01:31.395
So, um, make sure you have, I've got some great articles on

38
00:01:31.395 --> 00:01:33.995
there, some really useful links, everything basically

39
00:01:33.995 --> 00:01:35.875
that we're talking about in these shows.

40
00:01:36.695 --> 00:01:38.275
We have the resources

41
00:01:38.375 --> 00:01:40.595
and everything that you need in this website.

42
00:01:40.905 --> 00:01:42.515
It's gonna be there for the next 12 months,

43
00:01:42.575 --> 00:01:43.875
so make sure you use it

44
00:01:43.875 --> 00:01:45.595
as your go-to place when you're talking

45
00:01:45.775 --> 00:01:48.395
or thinking about pensions and pension questions.

46
00:01:49.245 --> 00:01:51.955
Right? That is everything here, Rachel, isn't it?

47
00:01:51.955 --> 00:01:54.395
Oh, I think would like to give an announcement actually

48
00:01:54.575 --> 00:01:56.875
to our partner this year, Royal London.

49
00:01:57.385 --> 00:01:58.755
Okay. Of partnering with us.

50
00:01:59.035 --> 00:02:00.435
I think we can have a graphic on screen

51
00:02:00.435 --> 00:02:01.795
to show Royal London as well.

52
00:02:01.895 --> 00:02:05.515
Can, can we see that full screen? Yeah. Oh, we can, we can.

53
00:02:05.575 --> 00:02:06.795
No, they are Royal London.

54
00:02:07.415 --> 00:02:09.955
Um, so, and we're very grateful for them partnering with us

55
00:02:09.955 --> 00:02:11.995
and we're having some great fun, aren't we?

56
00:02:12.105 --> 00:02:14.195
Some great fun we have and helping lots of people.

57
00:02:14.785 --> 00:02:16.995
Yeah. How many sessions we done so far?

58
00:02:17.065 --> 00:02:18.235
Four, isn't it? This is

59
00:02:18.235 --> 00:02:19.235
The fifth, yeah, four. And we're

60
00:02:19.235 --> 00:02:21.475
seeing record breaking numbers with thousands

61
00:02:21.475 --> 00:02:23.555
of you come into the shows, which is fantastic.

62
00:02:23.975 --> 00:02:26.795
So, um, we're gonna go into the studio now

63
00:02:27.015 --> 00:02:30.235
and see Sarah and Claire.

64
00:02:30.285 --> 00:02:32.035
Hello, Sarah and Claire. How are you doing?

65
00:02:32.415 --> 00:02:34.635
Hi Johnny. Really good, thank you. How are you?

66
00:02:34.945 --> 00:02:36.475
Very well, very well. I'm doing good.

67
00:02:36.475 --> 00:02:37.995
I'm excited about this show. Take it away.

68
00:02:37.995 --> 00:02:39.595
Tell us what we'll be learning today

69
00:02:39.695 --> 00:02:40.755
and tell us all about it.

70
00:02:41.005 --> 00:02:42.795
Thank you very much. Well, yeah. I'm Sarah.

71
00:02:42.895 --> 00:02:44.835
I'm Sarah Pens, and I'm a consumer finance

72
00:02:44.835 --> 00:02:46.115
specialist at Rowland.

73
00:02:46.115 --> 00:02:48.475
And, and I'm joined today by Claire.

74
00:02:48.495 --> 00:02:50.195
Claire, just tell us what your job is.

75
00:02:50.195 --> 00:02:51.315
Tell us a bit about what you, what you do,

76
00:02:51.375 --> 00:02:53.475
and also what we'll be covering in today's session.

77
00:02:54.055 --> 00:02:55.075
So I'm Claire Moffitt

78
00:02:55.075 --> 00:02:56.915
and I'm Royal London's pensions expert.

79
00:02:56.975 --> 00:02:59.605
And today we're going to be talking about how to get ready

80
00:02:59.705 --> 00:03:01.045
for the retirement you want.

81
00:03:01.665 --> 00:03:03.565
So we'll be thinking about how you find out

82
00:03:03.625 --> 00:03:06.245
how much you'll need in retirement, how you can add

83
00:03:06.245 --> 00:03:08.805
to your pension before you retire, um,

84
00:03:08.945 --> 00:03:11.565
and also the rules about how to take money out

85
00:03:11.565 --> 00:03:13.925
of your pension and tax free cash.

86
00:03:13.945 --> 00:03:15.405
And we'll also be talking about where you

87
00:03:15.405 --> 00:03:16.485
might get help from,

88
00:03:17.505 --> 00:03:19.325
But we'll start by talking about the kind

89
00:03:19.325 --> 00:03:20.645
of pension that you have.

90
00:03:20.785 --> 00:03:23.445
So there are two main types of pension.

91
00:03:23.585 --> 00:03:26.125
The first is a defined contribution pension.

92
00:03:26.265 --> 00:03:27.765
So jargon alert, sorry about that.

93
00:03:28.115 --> 00:03:30.565
What it means is that when you are working,

94
00:03:30.705 --> 00:03:33.085
you build up a pot of money and you pay into that

95
00:03:33.225 --> 00:03:34.645
and maybe your employer as well.

96
00:03:34.905 --> 00:03:37.885
And then when you retire, you can either take lump sums out

97
00:03:37.885 --> 00:03:40.445
of it or use it to give you an income once you stop working.

98
00:03:41.265 --> 00:03:43.725
Now, the other type of pension is a defined benefit pension.

99
00:03:44.025 --> 00:03:46.125
Now you might have heard this described

100
00:03:46.125 --> 00:03:49.245
as a final salary pension or a career average pension.

101
00:03:49.245 --> 00:03:52.445
They're both types of defined benefit pensions.

102
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Now with a defined benefit pension,

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you get a regular income once you stop working

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and that lasts for the rest of your life.

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Now in this session,

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we're gonna be focusing on defined contribution pensions.

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Now the reason is that's the pension

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that you are most likely to be paying into today.

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In fact, we've carried out some research

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into workplace pensions with 4,000 UK adults

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who are under retirement age who have a pension.

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And what we found is that over twice as many people

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have a defined contribution pension that they're saving into

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compared to the number who are saving into a

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defined benefit pension.

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So if you've got one of these defined contribution

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pensions, you need to think about

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how much you need in retirement to have that,

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that retirement that you want.

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Now that's going to depend on several factors,

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but the two main ones are when you want to retire,

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and we're going to come onto that in a few moments.

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And the standard of living that you want in retirement.

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Now, picturing retirement, well, it can feel quite tricky,

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especially if you're further away from retirement,

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but as you get closer, then it's probably a bit easier.

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And it might also be easier if you've got a budget

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that you already have and that you currently stick to.

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Um, and that's

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because you can kind of see the money that you spend now

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and you can think about the money

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that you'll spend in retirement,

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but perhaps the things that you won't need

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to spend money on.

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And our research found about half

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of people have a budget in retirement,

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but whether you have a budget

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or you don't have a budget, hopefully you will have the

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full new state pension.

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Now that's currently two and 2120 a week, or just over 11

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and half thousand pounds a year if you get the full amount.

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Now we analyse some data from the department, um,

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for working pensions,

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and we found that over half of people, um,

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who receive the new state.

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So that means that they reach state pension age

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after the 5th of April, 2016.

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Well over half of them aren't receiving the

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full new state pension.

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Quite a surprise, I think, wasn't it?

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It it was really surprising.

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So it's really important

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to check your state pension forecast.

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Now you can do that on gov uk, um,

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and that means you can check your national insurance record,

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see if you've got any gaps,

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and you might possibly be able to fill those gaps.

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Now, we've also got lots

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of information on state pension on our Royal london.com

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website, but let's assume you are going

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to get the full new state pension even.

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So the earliest age at which you can get it is currently 66.

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So if you're about to reach state pension age, you have

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to be 66.

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And right now, state pension age is going to increase to 67

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by 2028,

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and there's planned increases to 68 later on as well.

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So if you want to retire before state pension age,

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and our research finds that the most popular ages

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to retire are 60

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and 65, then you're going to need some money, um, for

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that retirement to fill that gap.

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And our research found that quite a few people in their

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fifties and sixties, actually 60% of people

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didn't know whether they were saving

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enough for their retirement.

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Now, as Claire said, it can be quite hard

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to picture your life in retirement

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and what that's gonna cost,

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but there's a really useful website called retirement living

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standards.org.uk that can help you with that.

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Now what this website has is different income amounts

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that you need for different standards of living.

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Now these, these, um,

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figures have been calculated using independent research,

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and they do assume that you don't have a rent

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or mortgage to pay,

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and it's any pension income that you receive

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has already been taxed.

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Now let's just have a look at these in detail.

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So let's, can we have the first slide please, James?

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Let's assume talking a moment ago

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about the full state pension.

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So let's assume you get the full amount Now

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that's just over 11 and a half thousand pounds a year.

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Now, according to the retirement living standards,

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if you want what they call a minimum lifestyle in retirement

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and you live on your own, you'll need

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14,400 pounds in income a year.

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Now, if you have this lifestyle, it will not be high living.

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In fact, you'll have to make some fairly tough

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decisions about your spending.

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So weekly meals out that they're, they're off.

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You can't afford those. But you can pay your basic bills

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and you can spend, for example, 50 pounds a week on food.

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You could have a week long holiday in the UK by coach, um,

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assuming as we said earlier on,

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that there's no rental or mortgage to pay.

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Now if you have 31,300 pounds

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a year including your state pension, then you could be able

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to afford what's called a moderate standard

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of living in retirement.

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Now, for this, you could have a two week holiday, a abroad

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as well as a weekend in the uk.

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Now can we have the slide just back up for a second, James?

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Sorry. You can have a two week holiday abroad

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and you would also be able to have a 3-year-old car,

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which you could replace every seven years.

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Finally, if you've saved enough to get an income

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of 43,100 pounds a year, you'll be able to push the boat out

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and have a more expensive 14 night holiday abroad.

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Replace your car every five years, weekly meals out,

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spend more on your food, on clothes and things like that.

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Okay, let's have the next slide please, James.

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Now if you are part of a couple, then it costs more,

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but the costs don't double and that's

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because it costs less

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for a couple living together than it does

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for two people living on their own.

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So again, for this minimum standard of living,

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you need 22,400 pounds a year.

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For a moderate, it's 43,100.

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And for a comfortable lifestyle,

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then you'll need 59,000 pounds a year between you.

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Uh, thanks very much James.

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So once you've checked the retirement living standards,

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the next step is to look at

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how much pension you've built up built up

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and what that might give you at retirement.

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Now there are different ways

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that you can do this at your first stop might be your own,

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uh, pension provider.

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They'll normally have tools and calculators to help you,

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but if you have several pensions, an alternative is to go

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to the government backed Money Helper website

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and they've got a pension calculator there that you can use.

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So what if you've done a budget,

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you've looked at the retirement living standards

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and you've worked out that you've,

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your pension pot isn't going

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to give you the retirement that you would like.

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Is it too late or is there anything you can do?

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Well, yes, there are. There is,

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there are things that you can do.

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There are steps you can take

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as you're approaching retirement maybe, um, instead

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of retiring at a certain age, you'd plans,

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you might retire a little bit later.

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Or perhaps instead of stopping work completely,

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you might think about working part-time

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or perhaps you might want to add to your pension.

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You could be in the fortunate position

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where you've paid off your mortgage or,

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or maybe you're about to.

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So say you've been paying 1300 pounds a month.

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Now that's actually the average monthly

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mortgage repayment in the uk.

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Well, it's about to come to an end.

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So what's the first thing you do? Happy days. Happy days.

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I can't wait. Well, you crack open the champagne, of course.

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Um, but after that, could you actually use that money

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and pay it into a pension instead?

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Not only will that help your retirement income,

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but it could also help you save tax.

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So James, if we can have a look at the next slide,

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we're going to look at the example of Raphael.

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Now Raphael is 55, he lives in England.

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It makes the tax sums a little bit easier.

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Um, and his mortgage is about to come

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to an end here in 60,000 pounds a year.

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And he's currently paying 250 pounds

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into his workplace pension.

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He gets 20% tax relief.

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Now that's that top up you get from the government,

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which means there's 312 pounds 50 going into his pension.

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Now he's paying 800 pounds a month into his mortgage

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currently, but Raphael is going to think about paying

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that 800 pounds into his pension.

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So if he does that,

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he'll automatically get a 200 pound top up in the form

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of tax relief, meaning there'd be a thousand pounds plus the

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previous 312 50.

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So with 1,312 pounds 50 going into his pension, now that's

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before an employer contribution.

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Now the extra pension contribution is actually going

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to reduce his taxable income,

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which means he'll become a basic rate taxpayer If we

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move on to the next slide.

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So in the next slide we can see actually

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what happens in terms in terms of tax.

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So he, before he had a salary of 60,000 pounds

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and you get to take off his pension contributions.

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So his taxable income then is 56,250 pounds.

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Now anything over 50,270 pounds is taxed at higher rate

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tax in England and Wales.

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So that would be 40% tax paid.

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But once he pays that larger amount, so it's a total

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of 15,750 pounds into his pension,

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then his taxable income becomes 44,250 pounds,

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which then means he only pays basic rate tax.

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And there's an additional benefit as well.

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Now because Raphael was a higher rate taxpayer when he paid

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the pension contributions,

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then he can also claim high rate tax relief.

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James, can we lose this slide please?

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Now he can claim this additional 20% in tax relief from the

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government on his pension contributions,

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but he might have to do

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that using her self-assessment tax return.

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So that's the tax benefit of money going in.

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But what about money coming out now

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because Raphael is 55, he can take that money out

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of his pension, 25% of it will be tax free

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and 75% will be taxable.

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Now, it's important to say that just

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because you can take money out

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of your pension when you are 55 does not mean

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you should necessarily do it.

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But if Raphael was in a situation where he needed

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that money straight away, then the rules would

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let him take that money out.

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Now talking about money going into your pension,

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there are other situations where it might be a good idea

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to pay extra money into your pension,

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particularly if you are approaching retirement

336
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and you feel you haven't saved enough to give you

337
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that lifestyle that you want.

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But let's just remind ourselves of the rules on

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what they can say about how much

340
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you can pay into your pension.

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Now again, there's gonna be some figures here,

342
00:14:11.105 --> 00:14:12.325
so uh, bear with me.

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The rules say that the maximum you can pay into your pension

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every year and get tax relief on your pension contributions

345
00:14:19.585 --> 00:14:21.565
are the equivalent to your salary.

346
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Now if you don't have any earnings, then you can pay up

347
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to 2,880 pounds into your pension every year

348
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and you'll get basic rate tax relief at 20%.

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Now, that will actually bring up the amount

350
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that goes into your pension to 3,600 pounds a year.

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So let's just assume

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that you are earning 40,000 pounds a year

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and you are in the frankly unusual situation of being able

354
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to tip your entire salary into your pension.

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So then you'd pay that 40,000 pounds in

356
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and you'd get tax relief on those pension contributions.

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Now that is admittedly an unusual scenario,

358
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but often people, well, they might get an inheritance

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and want to pay some

360
00:15:00.885 --> 00:15:02.765
or all of that money into their pension.

361
00:15:03.665 --> 00:15:06.765
So let's assume now you get a 50,000 pound inheritance

362
00:15:06.765 --> 00:15:08.405
and you want to pay it all into your pension.

363
00:15:09.475 --> 00:15:12.325
Well under the rules because your salary is 40,000 pounds.

364
00:15:12.625 --> 00:15:15.205
That's the maximum that you could pay in

365
00:15:15.665 --> 00:15:17.965
and get tax relief on those contributions.

366
00:15:18.625 --> 00:15:21.445
But Claire, it's as if that was simple,

367
00:15:21.505 --> 00:15:22.685
but it's not that simple, is it?

368
00:15:22.915 --> 00:15:24.845
Yeah, it is a bit more complicated than that.

369
00:15:24.905 --> 00:15:26.765
So if you're in the fortunate position

370
00:15:26.825 --> 00:15:28.525
of being a higher earner,

371
00:15:28.705 --> 00:15:30.845
so earning over 60,000 pounds a year,

372
00:15:30.845 --> 00:15:33.725
then something called the annual allowance might kick in.

373
00:15:34.185 --> 00:15:37.205
Now that limits the amount you can pay into pensions without

374
00:15:37.205 --> 00:15:38.565
facing a tax charge.

375
00:15:39.145 --> 00:15:41.405
The annual allowance is 60,000 pounds a year.

376
00:15:41.585 --> 00:15:43.965
So for most people it won't be an issue.

377
00:15:44.545 --> 00:15:48.005
But if you do earn more than 60,000 pounds a year

378
00:15:48.225 --> 00:15:50.045
and you're in the fortunate position of being able

379
00:15:50.045 --> 00:15:51.645
to pay it all into your pension,

380
00:15:52.305 --> 00:15:55.365
or perhaps more likely, as Sarah mentioned,

381
00:15:55.365 --> 00:15:58.925
you've maybe inherited some money, you could be limited, um,

382
00:15:58.925 --> 00:16:01.445
to the amount you can pay in pension contributions to

383
00:16:01.445 --> 00:16:03.885
that annual allowance of 60,000 pounds.

384
00:16:04.585 --> 00:16:08.365
Now, if you paid in more than 60,000 pounds, you might have

385
00:16:08.365 --> 00:16:09.445
to pay a tax charge.

386
00:16:10.305 --> 00:16:13.005
So we've been talking about paying money into pensions,

387
00:16:13.265 --> 00:16:15.525
but Sarah, tell us about the rules in taking

388
00:16:15.525 --> 00:16:16.845
money out of pensions.

389
00:16:17.475 --> 00:16:18.765
Well, firstly, as you mentioned earlier on,

390
00:16:18.765 --> 00:16:19.925
you normally have to be 55

391
00:16:20.025 --> 00:16:22.485
before you can take any money outta your pension.

392
00:16:23.225 --> 00:16:26.685
Now that minimum age is rising to 57 in a few years time.

393
00:16:26.745 --> 00:16:30.205
So from April, 2028, you will have to be 57

394
00:16:30.225 --> 00:16:31.485
before you can take money out.

395
00:16:31.825 --> 00:16:34.205
Now with defined contribution pensions,

396
00:16:34.205 --> 00:16:37.325
you can normally take up to 25% tax free

397
00:16:37.325 --> 00:16:38.565
and the rest will be taxable.

398
00:16:39.385 --> 00:16:42.085
Now that means just to make it really clear,

399
00:16:42.085 --> 00:16:44.965
that means it doesn't matter how much income you have

400
00:16:45.065 --> 00:16:47.845
or indeed where you get your other income from,

401
00:16:47.875 --> 00:16:52.445
that 25% tax free cash lump sum is not liable to tax.

402
00:16:53.265 --> 00:16:56.245
Now, one question that we get asked very regularly is,

403
00:16:56.245 --> 00:16:57.685
if you have several pension pots,

404
00:16:58.065 --> 00:17:01.005
can you take your tax free cash from each pension?

405
00:17:01.185 --> 00:17:04.285
So again, just to be really clear, the answer is yes.

406
00:17:04.705 --> 00:17:07.165
You can take your tax free cash from

407
00:17:07.225 --> 00:17:08.525
as many pensions as you have.

408
00:17:09.225 --> 00:17:11.365
Now I've talked about a tax free cash lump sum,

409
00:17:11.385 --> 00:17:14.685
but actually you don't have to take your tax free cash

410
00:17:14.705 --> 00:17:16.125
as one sort of wa of money.

411
00:17:16.505 --> 00:17:19.245
You can take it out as several payments if you want to.

412
00:17:19.325 --> 00:17:21.005
And again, we're often asked, which is better?

413
00:17:21.105 --> 00:17:23.725
One amount of money, a lump sum or several payments,

414
00:17:23.785 --> 00:17:25.685
and it really depends on your situation.

415
00:17:25.785 --> 00:17:28.405
So you might want to take your tax free cash

416
00:17:28.425 --> 00:17:31.965
as several payments to give you a tax free income while you

417
00:17:31.965 --> 00:17:34.165
wait for your state pension to kick in, for example.

418
00:17:34.705 --> 00:17:36.645
Or perhaps you're working what part-time

419
00:17:36.745 --> 00:17:39.125
and you want that tax free cash to boost your income

420
00:17:39.585 --> 00:17:41.605
or you have several planned expenses.

421
00:17:41.745 --> 00:17:44.325
And again, you'd rather receive your tax free cash

422
00:17:44.785 --> 00:17:47.205
as several payments than one payment.

423
00:17:48.225 --> 00:17:52.805
Now it is worth knowing, being frankly gloomy for a moment

424
00:17:53.275 --> 00:17:57.125
that if you took out your 25% tax free cash plunked it into,

425
00:17:57.275 --> 00:17:58.805
well, for example, a savings account,

426
00:17:59.505 --> 00:18:02.445
and then you were to die, then that could become liable

427
00:18:02.445 --> 00:18:03.445
to inheritance tax.

428
00:18:04.385 --> 00:18:06.125
Now, it used to be the case that you had

429
00:18:06.125 --> 00:18:08.405
to take your tax free cash outta your pension

430
00:18:08.825 --> 00:18:10.805
before you reach the age of 75.

431
00:18:10.945 --> 00:18:12.485
Now that rule doesn't exist anymore,

432
00:18:13.225 --> 00:18:15.485
but many people still do take their tax free cash

433
00:18:15.505 --> 00:18:17.005
before they hit 75.

434
00:18:17.105 --> 00:18:21.045
And the reason is that the tax treatment changes

435
00:18:21.305 --> 00:18:24.165
for those people, those beneficiaries who inherit

436
00:18:24.675 --> 00:18:27.765
your defined contribution pension if you were

437
00:18:27.765 --> 00:18:30.245
to die when you are 75 or over.

438
00:18:30.865 --> 00:18:33.645
Now, Claire, I've talked there about tax free cash lump sums

439
00:18:33.645 --> 00:18:35.845
or actually taking your tax free cash out

440
00:18:35.845 --> 00:18:37.165
as a series of payments.

441
00:18:37.225 --> 00:18:40.365
Now if you want to do this, is this something firstly

442
00:18:40.365 --> 00:18:41.685
that all pension providers offer

443
00:18:41.705 --> 00:18:44.645
and secondly, do just use an app or go online

444
00:18:44.645 --> 00:18:47.765
and fill in a form or is it, dare I say, more complicated?

445
00:18:48.075 --> 00:18:50.485
Well, as with many things to do with pensions,

446
00:18:50.505 --> 00:18:52.525
the answer is it, it depends.

447
00:18:52.985 --> 00:18:56.365
So most pension providers will offer this opportunity,

448
00:18:56.905 --> 00:18:58.605
but if you've got an older style pension

449
00:18:58.925 --> 00:18:59.965
contract, it might not.

450
00:19:00.075 --> 00:19:03.085
However, normally when you can access your pension benefits,

451
00:19:03.105 --> 00:19:04.645
you might be able to move that money

452
00:19:04.745 --> 00:19:06.685
to a new style of contract.

453
00:19:07.425 --> 00:19:09.645
I'd say, you know, the most important thing to do is

454
00:19:09.645 --> 00:19:12.125
to get in touch with your financial advisor if you have one

455
00:19:12.425 --> 00:19:15.285
or your pension company, and ask them what you can do.

456
00:19:16.185 --> 00:19:17.405
So that's tax free cash,

457
00:19:18.145 --> 00:19:20.885
but how else can you take your money out of pensions?

458
00:19:21.995 --> 00:19:24.365
Well, the three most, um, common ways

459
00:19:24.365 --> 00:19:27.725
to take money outta pensions are annuities draw down

460
00:19:27.945 --> 00:19:29.285
and cash lump sums.

461
00:19:29.545 --> 00:19:33.685
So firstly, annuities, well, if you take out an annuity,

462
00:19:33.685 --> 00:19:35.645
basically you're swapping your pension pot

463
00:19:35.785 --> 00:19:37.765
for a guaranteed secure income.

464
00:19:38.785 --> 00:19:42.005
Now, it can be paid monthly, it can be paid, um, annually,

465
00:19:42.005 --> 00:19:44.125
it can be paid six monthly, whatever you want.

466
00:19:44.665 --> 00:19:48.805
And what most people do is take their 25% tax free cash

467
00:19:49.105 --> 00:19:52.445
and then with the other 75% they purchase the annuity.

468
00:19:53.145 --> 00:19:55.845
But you could also use, you know, all of your pension pot

469
00:19:55.845 --> 00:19:57.005
to buy an annuity too.

470
00:19:58.265 --> 00:19:59.845
Now, the benefit of annuities is

471
00:19:59.845 --> 00:20:02.925
that it's a guaranteed secure income that pays out

472
00:20:02.925 --> 00:20:05.725
for the rest of your life no matter how long you live.

473
00:20:06.105 --> 00:20:08.845
And if you pay extra, it will cover your husband, wife,

474
00:20:08.845 --> 00:20:10.725
or um, partner's life too.

475
00:20:11.745 --> 00:20:15.005
Um, it can increase again if you pay extra,

476
00:20:15.225 --> 00:20:17.445
but it can increase in line with inflation, um,

477
00:20:17.445 --> 00:20:18.605
or a set amount.

478
00:20:19.555 --> 00:20:21.285
However, the disadvantage

479
00:20:21.905 --> 00:20:23.725
or the disadvantages of annuities are

480
00:20:23.725 --> 00:20:24.965
that they're very inflexible.

481
00:20:25.105 --> 00:20:28.445
So you can't just decide to take extra out one month.

482
00:20:28.755 --> 00:20:31.925
It's a set amount you're going to receive, you know,

483
00:20:31.945 --> 00:20:33.845
and the other thing is that, um,

484
00:20:33.865 --> 00:20:38.045
unless you have paid extra for your spouse, uh, partner, um,

485
00:20:38.105 --> 00:20:39.765
to receive money on your death

486
00:20:39.865 --> 00:20:42.525
or there's a guaranteed amount, then when you die,

487
00:20:42.955 --> 00:20:44.565
that money is gone.

488
00:20:46.025 --> 00:20:48.365
Now next. And what's the now become?

489
00:20:48.365 --> 00:20:50.885
The most common way of taking money outta your pensions is

490
00:20:50.885 --> 00:20:53.125
something called income draw down or draw down.

491
00:20:53.945 --> 00:20:55.045
Now what happens here is

492
00:20:55.045 --> 00:20:57.645
that your money is invested in a similar way

493
00:20:57.825 --> 00:21:00.645
as it is invested in the pension fund that you build up.

494
00:21:00.745 --> 00:21:02.205
So it'll be a range of investments.

495
00:21:03.025 --> 00:21:05.925
And again, many people will take some tax free cash

496
00:21:06.105 --> 00:21:09.205
and then move the rest of their pension into drawdown.

497
00:21:10.065 --> 00:21:13.085
Now, what drawdown lets you do is you can take as much

498
00:21:13.085 --> 00:21:14.245
or as little money as you want.

499
00:21:14.305 --> 00:21:17.045
Now you can set it up so you have a regular income payment

500
00:21:17.745 --> 00:21:19.645
or you can just take ad hoc lump

501
00:21:19.755 --> 00:21:20.805
sums if that's what you need.

502
00:21:21.785 --> 00:21:25.805
Now the important thing is that it's up to you to make sure

503
00:21:25.805 --> 00:21:27.605
that it lasts for the rest of your life

504
00:21:28.385 --> 00:21:30.765
unless you have other savings or investments.

505
00:21:31.825 --> 00:21:35.485
Now, you can't pay directly into a drawdown fund,

506
00:21:36.065 --> 00:21:38.645
but if you have a pension, you know you've been paying into

507
00:21:38.645 --> 00:21:40.605
that pension and then you move your money into drawdown,

508
00:21:40.945 --> 00:21:43.525
you can still carry on paying into that pension

509
00:21:43.905 --> 00:21:46.605
and then transfer that into draw down later.

510
00:21:46.825 --> 00:21:50.165
Now, as I mentioned, the money in your draw down pot is

511
00:21:50.645 --> 00:21:52.765
invested, so that should mean that it grows over time.

512
00:21:53.545 --> 00:21:56.165
But as with all investments, there's no guarantee

513
00:21:56.165 --> 00:21:58.165
that will happen and the value could fall.

514
00:21:58.185 --> 00:22:00.925
And indeed you could get back less than you

515
00:22:01.005 --> 00:22:02.205
transferred into drawdown.

516
00:22:03.145 --> 00:22:05.525
Now, some people really like the fact

517
00:22:05.525 --> 00:22:07.365
that drawdown means they can choose

518
00:22:07.695 --> 00:22:08.885
where their money's invested,

519
00:22:08.885 --> 00:22:10.365
but for some people that's not right at all.

520
00:22:10.675 --> 00:22:12.445
They maybe don't have the confidence to do that.

521
00:22:12.865 --> 00:22:14.885
And in that case, there's something called investment

522
00:22:15.365 --> 00:22:16.885
pathways, which will do this for you.

523
00:22:17.665 --> 00:22:21.085
Now, you can find information about investment pathways on

524
00:22:21.085 --> 00:22:22.805
your own pension provider's website,

525
00:22:23.185 --> 00:22:25.805
or there's also information on the independent

526
00:22:25.805 --> 00:22:27.765
and government backed money helper website.

527
00:22:28.785 --> 00:22:30.005
Now the third option is

528
00:22:30.005 --> 00:22:31.885
to take cash lump sums directly from

529
00:22:31.885 --> 00:22:32.925
your payment from your pension.

530
00:22:33.025 --> 00:22:36.245
Now in this case, 25% will be tax free

531
00:22:36.265 --> 00:22:38.765
and the other 75% will be taxable.

532
00:22:39.385 --> 00:22:41.005
But crucially, you have

533
00:22:41.005 --> 00:22:43.725
to take both payments at the same time.

534
00:22:43.905 --> 00:22:46.045
Now, you don't have to choose one or the other.

535
00:22:46.045 --> 00:22:47.885
You can have a mixture of the different ways

536
00:22:47.905 --> 00:22:49.365
of taking money out of your pension.

537
00:22:49.905 --> 00:22:52.205
So for example, if you want to retire at 60

538
00:22:52.225 --> 00:22:56.165
or 65, maybe you want to move your pension into draw down,

539
00:22:56.585 --> 00:22:59.525
and then once you reach 75 with the rest of the money

540
00:22:59.525 --> 00:23:01.045
that's left over, buy an annuity.

541
00:23:01.205 --> 00:23:03.205
'cause that way you know that money will

542
00:23:03.205 --> 00:23:04.445
last for as long as you do.

543
00:23:04.825 --> 00:23:07.325
Or perhaps you want to buy an annuity

544
00:23:07.325 --> 00:23:09.805
to cover your ne you know, necessary bills,

545
00:23:09.805 --> 00:23:10.885
your household bills so

546
00:23:10.885 --> 00:23:12.405
that you know those are gonna get, get paid.

547
00:23:12.945 --> 00:23:15.885
And then for your spending money, you want to move them,

548
00:23:16.115 --> 00:23:17.605
your pension into draw down.

549
00:23:17.795 --> 00:23:18.885
It's entirely up to you.

550
00:23:19.985 --> 00:23:21.485
But there's a couple of things that you need

551
00:23:21.485 --> 00:23:23.645
to think about when you take money outta pensions.

552
00:23:23.945 --> 00:23:26.645
So the first is that it, it's not like a bank account,

553
00:23:26.745 --> 00:23:29.365
so you can't just phone up or go into your app

554
00:23:29.365 --> 00:23:30.805
and request money and that money will be

555
00:23:30.805 --> 00:23:31.965
in your account rapidly.

556
00:23:32.675 --> 00:23:34.765
Pension schemes and pension companies have

557
00:23:34.765 --> 00:23:37.765
to carry out a number of checks, um,

558
00:23:38.025 --> 00:23:39.885
before that your money can be paid out.

559
00:23:40.025 --> 00:23:42.925
So for example, say you're thinking of buying a new kitchen,

560
00:23:43.595 --> 00:23:47.205
make sure you leave enough money, um, for that pension money

561
00:23:47.305 --> 00:23:48.645
to come through before you have

562
00:23:48.645 --> 00:23:50.205
to pay the balance of your kitchen.

563
00:23:51.635 --> 00:23:53.085
Also, from a tax point of view,

564
00:23:53.245 --> 00:23:55.165
pensions work a little bit like salary.

565
00:23:55.825 --> 00:23:59.445
So this can be a bit of an issue if you take a lot

566
00:23:59.445 --> 00:24:00.805
of money in the first month

567
00:24:00.805 --> 00:24:02.405
that you're taking money out of a pension.

568
00:24:02.865 --> 00:24:05.645
So say you're taking a a larger cash lump sum

569
00:24:05.665 --> 00:24:07.365
or you're taking quite a large chunk

570
00:24:07.365 --> 00:24:12.045
of income from drawdown, well, HMRC think

571
00:24:12.235 --> 00:24:14.565
that you're going to receive that same large amount

572
00:24:14.565 --> 00:24:15.765
of money every month.

573
00:24:15.945 --> 00:24:18.685
So you'll pay a lot more tax than you should be paying.

574
00:24:19.985 --> 00:24:21.965
Now what happens is you can request

575
00:24:21.965 --> 00:24:24.085
that money back straight away, um,

576
00:24:24.265 --> 00:24:26.765
or you can wait for your tax code to sort itself out,

577
00:24:26.825 --> 00:24:28.205
but that emergency rate

578
00:24:28.205 --> 00:24:30.685
of tax will be applied in that situation.

579
00:24:32.545 --> 00:24:35.085
So that's how money can be taxed.

580
00:24:35.385 --> 00:24:37.285
But if you still want to pay into a pension

581
00:24:38.175 --> 00:24:41.765
after you've taken money outta a pension, so say, you know,

582
00:24:41.765 --> 00:24:44.325
Sarah, you spoke about someone who's maybe, um, decided

583
00:24:44.345 --> 00:24:47.685
to drop their hours work part-time kind of top up, um,

584
00:24:47.745 --> 00:24:49.885
but they still want to pay into their pension,

585
00:24:50.555 --> 00:24:51.845
then there's something else

586
00:24:51.875 --> 00:24:53.125
they need to think about as well.

587
00:24:53.385 --> 00:24:55.325
And that's the money purchase annual allowance

588
00:24:55.385 --> 00:24:57.845
or MPEE for short. I

589
00:24:57.845 --> 00:24:59.285
Did feel some more jargon Coming off.

590
00:24:59.365 --> 00:25:01.365
I know it's a lot of jargon. Sorry about that.

591
00:25:01.825 --> 00:25:05.045
So what the money purchase annual allowance is, is

592
00:25:05.155 --> 00:25:06.365
that it's the amount

593
00:25:06.395 --> 00:25:09.085
that can be paid into defined contribution pensions.

594
00:25:09.085 --> 00:25:10.885
So these pension pots we've been speaking about,

595
00:25:11.945 --> 00:25:14.205
if you've accessed pensions flexibly,

596
00:25:14.585 --> 00:25:16.485
now the money purchase annual allowance is

597
00:25:16.745 --> 00:25:18.045
10,000 pounds a year.

598
00:25:18.065 --> 00:25:20.445
So that's just over 800 pounds a month.

599
00:25:21.145 --> 00:25:23.725
Um, that sounds like a lot of money for for many people

600
00:25:23.915 --> 00:25:26.285
that you know, they'll never get to that amount.

601
00:25:27.025 --> 00:25:30.005
But I should say that that covers your contributions,

602
00:25:30.075 --> 00:25:32.805
your employer contributions, as well as tax relief.

603
00:25:33.345 --> 00:25:35.685
And as we've mentioned, there could be situations

604
00:25:35.695 --> 00:25:37.565
where you can afford to pay more.

605
00:25:37.665 --> 00:25:40.405
So, you know, the example of Raphael and his mortgage

606
00:25:40.545 --> 00:25:41.645
or, um, you know,

607
00:25:41.665 --> 00:25:44.045
the examples we spoke about about inheritances.

608
00:25:44.185 --> 00:25:46.165
So, so let's go back to Raphael.

609
00:25:46.225 --> 00:25:48.205
Um, James, if we can have the next slide please.

610
00:25:49.225 --> 00:25:54.005
So if Raphael wanted to take 20,000 pounds outta his pension

611
00:25:54.345 --> 00:25:56.125
and he decided to take it out as one

612
00:25:56.125 --> 00:25:59.485
of those cash lump sums, so that's where 25% is tax free

613
00:25:59.485 --> 00:26:02.405
and the other 75%, um, is taxed,

614
00:26:02.405 --> 00:26:03.805
but you get both at the same time.

615
00:26:04.595 --> 00:26:07.045
Well, he would get 5,000 pounds tax free

616
00:26:07.145 --> 00:26:09.965
and the other 15,000 pounds would be subject to tax.

617
00:26:10.705 --> 00:26:14.445
But Raphael has now triggered the money purchase annual

618
00:26:14.445 --> 00:26:17.525
allowance, and that means that he can't pay as much

619
00:26:17.865 --> 00:26:19.405
as he wanted to into his pension.

620
00:26:19.545 --> 00:26:20.805
So remember he was going to pay

621
00:26:20.805 --> 00:26:23.285
that mortgage payment into his men, into his pension.

622
00:26:23.465 --> 00:26:25.165
So, so he'd be restricted.

623
00:26:25.185 --> 00:26:27.125
If he did pay more than 10,000 pounds,

624
00:26:27.395 --> 00:26:28.925
then he would have a tax charge.

625
00:26:30.145 --> 00:26:32.685
Anyone who triggers the money purchased annual allowance,

626
00:26:32.955 --> 00:26:34.925
well, they'll get a letter from their provider

627
00:26:34.925 --> 00:26:36.405
telling them that they've done this.

628
00:26:37.505 --> 00:26:40.205
So when doesn't this MPAA apply?

629
00:26:40.355 --> 00:26:43.485
Well, it doesn't apply if you have a defined

630
00:26:43.485 --> 00:26:44.525
benefit pension.

631
00:26:44.785 --> 00:26:47.965
And in a similar way it doesn't apply if you have a defined

632
00:26:48.325 --> 00:26:51.525
contribution pension where you just take the tax free cash

633
00:26:51.525 --> 00:26:54.365
and then you use the rest to turn into a,

634
00:26:54.605 --> 00:26:56.245
a guaranteed income through an annuity.

635
00:26:56.665 --> 00:26:59.885
Now it also doesn't apply if you take your tax free cash

636
00:26:59.955 --> 00:27:01.565
from a defined contribution pension

637
00:27:01.985 --> 00:27:04.005
and then you move the rest into draw down,

638
00:27:04.005 --> 00:27:06.005
but you don't take any income

639
00:27:06.745 --> 00:27:09.165
and it also doesn't apply if you have up

640
00:27:09.165 --> 00:27:12.645
to three small pension pots worth less than 10,000 pounds.

641
00:27:12.745 --> 00:27:14.325
But now let's have our slide

642
00:27:14.325 --> 00:27:16.645
and go back to Raphael again please, James.

643
00:27:17.345 --> 00:27:22.285
So if Raphael were to take 5,000 pounds as tax free cash

644
00:27:22.745 --> 00:27:26.165
and then he moved the other 75% into draw down, so

645
00:27:26.165 --> 00:27:27.205
that's 15,000 pounds,

646
00:27:28.025 --> 00:27:32.925
he could then still carry on paying 15,000 700 570

647
00:27:32.955 --> 00:27:36.045
year into, sorry, 15,750 a year into his pension.

648
00:27:36.045 --> 00:27:38.765
Now that's the amount, uh, from his mortgage payments.

649
00:27:39.395 --> 00:27:43.485
Okay, thanks James. Now, the MPAA also does not apply

650
00:27:44.105 --> 00:27:46.525
if you, um, if you move your money into draw down,

651
00:27:46.525 --> 00:27:47.685
but you don't take anything from it.

652
00:27:47.705 --> 00:27:51.805
But it does apply if you take even a pound of income

653
00:27:52.355 --> 00:27:53.885
once you've moved it into draw down

654
00:27:54.105 --> 00:27:56.565
or if you take cash from your pension,

655
00:27:56.635 --> 00:27:57.885
even a really small amount.

656
00:27:59.025 --> 00:28:01.925
Now, we also wanted to cover what happens if you need

657
00:28:01.945 --> 00:28:03.245
to access your pensions.

658
00:28:03.345 --> 00:28:05.005
Um, earlier because of ill health.

659
00:28:05.505 --> 00:28:07.125
Now there's two different scenarios.

660
00:28:07.265 --> 00:28:10.045
So the first scenario is that of serious ill health,

661
00:28:10.425 --> 00:28:13.445
and that's where someone has a life expectancy, sadly,

662
00:28:13.445 --> 00:28:14.845
of less than 12 months.

663
00:28:15.225 --> 00:28:18.365
And in that situation, you can normally access, um,

664
00:28:18.395 --> 00:28:21.685
your whole pension pot as a tax free lump sum.

665
00:28:22.225 --> 00:28:25.405
The second scenario is someone who's, um, too ill to work

666
00:28:25.825 --> 00:28:27.805
and you would call that medical retirement

667
00:28:27.805 --> 00:28:29.765
or retirement on ill health grounds.

668
00:28:30.025 --> 00:28:33.365
And that means that they can access their pensions under the

669
00:28:33.365 --> 00:28:36.645
age of 55, but they would have the same choice of options.

670
00:28:36.875 --> 00:28:39.365
Draw down annuity, um, cash lump sum

671
00:28:39.385 --> 00:28:41.165
as someone who's over 55.

672
00:28:42.345 --> 00:28:46.325
Now if this is something, um, that you, you know, you rl,

673
00:28:46.745 --> 00:28:49.685
um, then the best thing to do is to speak

674
00:28:49.825 --> 00:28:51.605
to your financial advisor if you have one

675
00:28:51.905 --> 00:28:53.485
or to your pension company

676
00:28:53.485 --> 00:28:55.805
because you'll need supporting medical evidence

677
00:28:55.825 --> 00:28:58.445
and they can talk you through exactly what you'd need.

678
00:28:59.305 --> 00:29:02.205
So I think it's really important to kind of, to ask

679
00:29:02.225 --> 00:29:03.565
for help in that situation.

680
00:29:03.865 --> 00:29:06.365
Um, there's also help available on the government

681
00:29:06.365 --> 00:29:08.485
and independent, um, website,

682
00:29:08.535 --> 00:29:11.325
money Helper about ill health and retirement.

683
00:29:11.985 --> 00:29:13.365
So we've given you a lot

684
00:29:13.365 --> 00:29:15.125
of information today in the live show.

685
00:29:15.235 --> 00:29:16.765
Some of it has been quite complicated.

686
00:29:16.905 --> 00:29:19.365
So just before we finish, the last thing we want

687
00:29:19.365 --> 00:29:20.845
to say is, where can you go for help?

688
00:29:20.845 --> 00:29:22.885
Well, first of all, your own pension company,

689
00:29:22.885 --> 00:29:26.645
they'll often have guides, tools, articles, uh, information

690
00:29:26.645 --> 00:29:28.845
to help you particularly as you approach retirement.

691
00:29:28.845 --> 00:29:29.965
So that's a good place to start.

692
00:29:30.805 --> 00:29:32.565
Secondly, from the Money Helper service

693
00:29:32.565 --> 00:29:33.405
that we've been talking about,

694
00:29:33.405 --> 00:29:34.565
there's something called pension wise.

695
00:29:34.665 --> 00:29:36.445
Now if you're age 50 or over

696
00:29:36.505 --> 00:29:38.245
and you have a defined contribution pension,

697
00:29:38.635 --> 00:29:40.805
then you can get a 60 minute telephone appointment

698
00:29:41.015 --> 00:29:42.405
where now they won't give you advice,

699
00:29:42.425 --> 00:29:43.805
but what they'll do is they'll talk you

700
00:29:43.805 --> 00:29:45.525
through the different options, the different ways

701
00:29:45.545 --> 00:29:48.805
of taking money outta your pension, the tax implications,

702
00:29:48.945 --> 00:29:51.805
and also they'll alert you to scams.

703
00:29:52.385 --> 00:29:55.125
Now it doesn't matter how big or small your pension pot is,

704
00:29:55.125 --> 00:29:56.405
and you can access this

705
00:29:56.905 --> 00:29:58.685
before you hit the age of 50,

706
00:29:58.825 --> 00:30:01.165
if you inherit a defined contribution pension,

707
00:30:01.905 --> 00:30:04.605
or indeed if you qualify for Ill health retirement,

708
00:30:04.945 --> 00:30:06.605
now you can also go and see a financial advisor.

709
00:30:06.945 --> 00:30:08.645
Now they will give you advice, uh,

710
00:30:08.785 --> 00:30:10.245
and they will charge for this.

711
00:30:10.705 --> 00:30:12.045
It can be either an hourly rate

712
00:30:12.045 --> 00:30:14.525
or a fixed fee, a bit like a solicitor or an accountant,

713
00:30:15.105 --> 00:30:17.605
or they might charge you a percentage of the money

714
00:30:17.605 --> 00:30:20.365
that you have invested, you know, maybe 0.5%, 1%.

715
00:30:20.585 --> 00:30:22.765
So on a financial advisor,

716
00:30:22.765 --> 00:30:25.045
they will find out about your individual circumstances.

717
00:30:25.185 --> 00:30:27.765
So they'll look at your income, what you want in retirement,

718
00:30:27.865 --> 00:30:30.485
how much you have in your pension, the risk you're prepared

719
00:30:30.485 --> 00:30:31.965
to take, how you see your lifestyle.

720
00:30:32.545 --> 00:30:33.765
And if you have a husband, wife,

721
00:30:33.785 --> 00:30:36.525
or partner take their situation into account now,

722
00:30:37.115 --> 00:30:39.405
they won't come up with a one size fits all approach.

723
00:30:39.795 --> 00:30:41.485
They will take time to get to know you

724
00:30:41.505 --> 00:30:43.245
and they will make a recommendation

725
00:30:43.545 --> 00:30:45.645
of a solution based on your situation.

726
00:30:45.665 --> 00:30:46.925
So that really to help

727
00:30:46.925 --> 00:30:48.645
with your financial and retirement planning.

728
00:30:49.125 --> 00:30:50.245
I guess what leads from that is

729
00:30:50.245 --> 00:30:51.605
where do you find a financial advisor?

730
00:30:51.755 --> 00:30:54.085
Well, a couple of thoughts if you are looking for one

731
00:30:54.085 --> 00:30:55.365
to help you with retirement.

732
00:30:55.365 --> 00:30:56.965
Then Money Helper, which you mentioned

733
00:30:56.965 --> 00:30:59.725
before, has a retirement advisor directory,

734
00:30:59.725 --> 00:31:01.805
which will have a list of regulated

735
00:31:01.825 --> 00:31:03.485
and impartial financial advisors.

736
00:31:03.755 --> 00:31:05.685
There's also a website called Vouched

737
00:31:05.705 --> 00:31:08.805
for which has information on financial advisors

738
00:31:09.065 --> 00:31:11.645
and also reviews from existing clients.

739
00:31:11.745 --> 00:31:13.765
But many people find a financial advisor

740
00:31:14.155 --> 00:31:15.365
through family and friends.

741
00:31:15.665 --> 00:31:18.565
So well hopefully we've highlighted today the kind

742
00:31:18.565 --> 00:31:19.725
of things you need to think about so

743
00:31:19.725 --> 00:31:21.325
that you can really get ready for the kind

744
00:31:21.325 --> 00:31:22.765
of retirement that you want.

745
00:31:22.945 --> 00:31:26.325
Um, and Johnny, I can see there's questions coming in thick

746
00:31:26.325 --> 00:31:27.725
and fast, which is always great.

747
00:31:27.865 --> 00:31:30.205
So, uh, yeah, hello. Happy to answer them.

748
00:31:30.615 --> 00:31:33.965
Hello? Yeah. Um, if we could come back. Hello?

749
00:31:34.105 --> 00:31:35.525
Can you see me and Rachel here?

750
00:31:35.565 --> 00:31:37.525
I tell you what, we've had a lot.

751
00:31:37.635 --> 00:31:39.525
I've never really been at this end of the desk

752
00:31:39.525 --> 00:31:40.925
where I see all the questions coming,

753
00:31:41.065 --> 00:31:43.205
but there is a lot of questions. There's

754
00:31:43.205 --> 00:31:45.165
A lots, isn't there that, that's it with pensions,

755
00:31:45.275 --> 00:31:47.125
it's just, there's just so many questions.

756
00:31:47.225 --> 00:31:48.805
I'm, we're not gonna get through them all.

757
00:31:48.905 --> 00:31:50.765
We can't, we can't do that in this time,

758
00:31:50.905 --> 00:31:52.525
but yeah, there is, there is lots

759
00:31:52.525 --> 00:31:53.645
guys. So yeah, that's what we

760
00:31:53.825 --> 00:31:54.825
Get prepared. Exactly.

761
00:31:54.825 --> 00:31:56.005
So get prepared in a second,

762
00:31:56.065 --> 00:31:58.005
but I just wanna say great show again.

763
00:31:58.185 --> 00:32:01.005
Um, I always enjoy, um, the Royal London shows.

764
00:32:01.545 --> 00:32:03.925
Um, I very informative, very, very much so,

765
00:32:03.955 --> 00:32:05.645
very helpful while um, you were talking,

766
00:32:05.805 --> 00:32:07.205
I had a little girl on the Retirement

767
00:32:07.205 --> 00:32:08.645
Living standards website.

768
00:32:09.195 --> 00:32:13.085
Love it. Um, I think I'm on track for a moderate,

769
00:32:13.505 --> 00:32:14.645
um, retirement.

770
00:32:14.795 --> 00:32:16.725
Okay. Um, when I look at that, that's good.

771
00:32:16.925 --> 00:32:18.205
I think so that's good, isn't it?

772
00:32:18.385 --> 00:32:19.645
I'm happy, I'm happy with that.

773
00:32:19.705 --> 00:32:21.325
I'd like to try and do better,

774
00:32:21.545 --> 00:32:23.285
but yeah, I think I'm, I'm there,

775
00:32:23.285 --> 00:32:24.845
but I'm, I'm, I'm happy with that.

776
00:32:25.505 --> 00:32:27.285
Um, so yeah, really liked it.

777
00:32:27.495 --> 00:32:29.285
Loads of good information again.

778
00:32:29.585 --> 00:32:33.125
Um, I like, um, I don't think it's jargon what you say.

779
00:32:33.205 --> 00:32:35.565
I think you say it in a really, really uh,

780
00:32:35.585 --> 00:32:36.885
understandable way.

781
00:32:36.905 --> 00:32:39.285
So it's really good. So, um, let's get to the questions.

782
00:32:39.285 --> 00:32:41.125
So, um, Sarah

783
00:32:41.225 --> 00:32:43.445
and Claire, we, we we're gonna feed the questions to you

784
00:32:43.625 --> 00:32:45.925
so you may able to see them on the iPad now.

785
00:32:46.065 --> 00:32:48.565
So take it away, take it away. Well there's,

786
00:32:48.565 --> 00:32:49.765
There's a few questions we can see.

787
00:32:49.765 --> 00:32:52.565
Um, maybe start with the state pension one.

788
00:32:52.625 --> 00:32:53.965
So the question is one

789
00:32:53.965 --> 00:32:55.325
of the reasons why people wouldn't

790
00:32:55.325 --> 00:32:56.525
get their full state pension.

791
00:32:56.525 --> 00:32:58.085
Maybe Claire if I kick off with this one.

792
00:32:58.085 --> 00:32:59.605
And so there's a couple of reasons.

793
00:32:59.825 --> 00:33:02.685
Um, Claire mentioned about not having a full national

794
00:33:02.685 --> 00:33:04.365
insurance record and what that means.

795
00:33:05.065 --> 00:33:07.805
You may have had periods where for example, you were abroad,

796
00:33:07.865 --> 00:33:12.045
you were working abroad or for example, where you were out

797
00:33:12.045 --> 00:33:13.845
of work real, but not claiming benefits.

798
00:33:13.845 --> 00:33:16.325
Because if you were getting benefits then you would get sort

799
00:33:16.325 --> 00:33:18.365
of essentially national insurance kind of credits

800
00:33:18.985 --> 00:33:22.125
or perhaps you were caring for either children

801
00:33:22.345 --> 00:33:24.405
or for, um, an elderly relative

802
00:33:24.825 --> 00:33:26.765
and you didn't register for child benefit,

803
00:33:26.775 --> 00:33:29.125
which again would've protected your national insurance

804
00:33:29.125 --> 00:33:30.925
record or for carers credits.

805
00:33:31.225 --> 00:33:33.005
But there can be other reasons why people

806
00:33:33.855 --> 00:33:36.285
don't get the full amount of the state pension, can't

807
00:33:36.285 --> 00:33:37.285
They? Yeah, that's right.

808
00:33:37.285 --> 00:33:38.445
And um, you know, I said

809
00:33:38.445 --> 00:33:40.165
that we've got lots of information on this

810
00:33:40.165 --> 00:33:42.325
because we talk about state pension quite a lot.

811
00:33:42.865 --> 00:33:45.845
So it might be that you are something called contracted out,

812
00:33:45.865 --> 00:33:48.645
and again, it's one of these kinda, it's a bit jargon,

813
00:33:48.865 --> 00:33:52.045
it just means that you paid a bit less national insurance.

814
00:33:52.625 --> 00:33:55.165
Um, it was really common before 2016.

815
00:33:55.325 --> 00:33:57.845
A lot of people were contracted out and it was

816
00:33:57.845 --> 00:33:59.765
because you had a good workplace pension.

817
00:34:00.385 --> 00:34:03.045
Um, so that's one of the reasons you might have a,

818
00:34:03.285 --> 00:34:06.125
a little bit less now it will show in your national

819
00:34:06.125 --> 00:34:08.765
insurance, um, record your state pension forecast.

820
00:34:09.195 --> 00:34:11.805
It's called something called the contracted out pension

821
00:34:11.815 --> 00:34:14.365
equivalent, which again, is just, is not really easy.

822
00:34:14.595 --> 00:34:15.725
It's head Penalty, isn't it really? So

823
00:34:15.725 --> 00:34:18.645
that's why you might, you know, have a good, um, pension

824
00:34:19.185 --> 00:34:21.485
or you know, just simply you've, as you mentioned,

825
00:34:21.545 --> 00:34:24.045
you need 35 years of national insurance credit.

826
00:34:24.185 --> 00:34:26.165
So you could have stopped working perhaps kind

827
00:34:26.165 --> 00:34:28.525
of in your fifties before you had that 35 years.

828
00:34:29.265 --> 00:34:31.485
Um, one thing we always mention Sarah, is

829
00:34:31.485 --> 00:34:34.125
that if you stopped work to care for grandchildren,

830
00:34:34.385 --> 00:34:37.085
you know, and I think this is, um, increasing

831
00:34:37.085 --> 00:34:38.085
Is common, Isn't it? It's

832
00:34:38.085 --> 00:34:41.685
really common then it's a really good idea to apply

833
00:34:41.685 --> 00:34:44.125
for something called specified adult childcare credits.

834
00:34:44.425 --> 00:34:47.845
Um, so yeah, I think that would give you some extra years

835
00:34:47.845 --> 00:34:49.765
of national insurance contributions

836
00:34:49.785 --> 00:34:52.125
and help you towards that full state pension.

837
00:34:52.385 --> 00:34:53.965
And it's just worth saying that

838
00:34:54.135 --> 00:34:55.845
until April the fifth next year,

839
00:34:56.305 --> 00:34:59.685
it is actually potentially possible to go back 18 years so

840
00:34:59.685 --> 00:35:01.525
to till until 2006

841
00:35:01.985 --> 00:35:04.245
and fill in gaps in your national insurance record.

842
00:35:04.265 --> 00:35:05.965
Now after April the fifth next year,

843
00:35:06.545 --> 00:35:08.525
you can only go back over the last six years.

844
00:35:08.625 --> 00:35:11.045
Now it's a good idea to see if you qualify

845
00:35:11.185 --> 00:35:13.605
for these free national insurance credits in any way,

846
00:35:13.625 --> 00:35:15.805
but if you don't and you have gaps in your national

847
00:35:15.805 --> 00:35:18.485
insurance record, then sometimes it can be a really cost

848
00:35:18.485 --> 00:35:20.085
effective way of boosting your pension.

849
00:35:20.225 --> 00:35:23.165
So you can do this online on the Gov UK website if you

850
00:35:23.165 --> 00:35:24.245
just search for state pension.

851
00:35:24.795 --> 00:35:28.245
I've got a question to maybe add to to that.

852
00:35:28.385 --> 00:35:31.765
So, um, we've got, um, somewhere in the chat has asked, uh,

853
00:35:31.825 --> 00:35:33.525
the questions, can I buy

854
00:35:34.065 --> 00:35:36.565
ni years even if I wasn't in the country?

855
00:35:36.715 --> 00:35:38.645
Even if it wasn't in the UK at that time?

856
00:35:38.925 --> 00:35:39.965
I know you might not have to answer that,

857
00:35:40.025 --> 00:35:42.685
but, um, bit of a, uh, tricky.

858
00:35:42.865 --> 00:35:45.045
So I would say anytime you're working abroad,

859
00:35:45.145 --> 00:35:47.805
the Gov UK website is really good about kind

860
00:35:47.805 --> 00:35:49.885
of talking about the different points where it's actually,

861
00:35:50.185 --> 00:35:52.405
you know, you might, you might be able to,

862
00:35:52.745 --> 00:35:54.045
um, buy for certain years.

863
00:35:54.585 --> 00:35:56.885
Um, sometimes it depends on which country you're

864
00:35:56.885 --> 00:35:57.965
in, it's a bit trickier.

865
00:35:58.025 --> 00:36:00.765
So go onto gov UK um,

866
00:36:00.825 --> 00:36:02.765
and then you'll see the list of countries

867
00:36:02.865 --> 00:36:05.245
and you can probably work out if there's anything you can do

868
00:36:05.265 --> 00:36:06.445
for that point in time

869
00:36:06.515 --> 00:36:09.685
because you might have actually been able to build up years

870
00:36:10.145 --> 00:36:12.045
for the years even you were outside the uk.

871
00:36:12.465 --> 00:36:16.325
It just depends on where you are, what countries it's to do

872
00:36:16.325 --> 00:36:18.205
with kind of being in EEA

873
00:36:18.385 --> 00:36:19.925
or if you were in a country where they,

874
00:36:19.925 --> 00:36:21.805
we've got a social security agreement with them,

875
00:36:22.025 --> 00:36:23.845
but it's really clear on gov UK

876
00:36:24.025 --> 00:36:25.285
and it will help you out with that.

877
00:36:27.085 --> 00:36:28.725
Brilliant, thank you. So we've got,

878
00:36:28.845 --> 00:36:29.885
I can see loads more questions.

879
00:36:29.905 --> 00:36:33.245
So, um, wanna hear about the retirement living standards,

880
00:36:33.425 --> 00:36:37.005
um, Claire, which is, are the lifestyle incomes the sort

881
00:36:37.005 --> 00:36:39.405
of minimum moderate and comfortable quoted before

882
00:36:39.405 --> 00:36:41.365
or after income tax? So what's the answer?

883
00:36:41.555 --> 00:36:44.365
They're after income tax and they're also, um,

884
00:36:44.385 --> 00:36:45.725
and I think you mentioned that they're

885
00:36:45.725 --> 00:36:47.245
after, um, they presume

886
00:36:47.245 --> 00:36:49.325
that you won't have any living costs in retirement. So

887
00:36:49.555 --> 00:36:52.805
Rent, rent, housing costs, Rent or um, mortgage.

888
00:36:53.345 --> 00:36:55.685
Now for many people that is the case now

889
00:36:55.685 --> 00:36:57.085
because actually, you know,

890
00:36:57.085 --> 00:36:59.845
as people are retiring at this point in time, um,

891
00:36:59.875 --> 00:37:01.885
most people have paid off a mortgage for example.

892
00:37:01.985 --> 00:37:03.965
But actually we're going to be finding that, you know,

893
00:37:03.965 --> 00:37:05.445
as we kind of go years forward

894
00:37:05.675 --> 00:37:08.005
that people still might be paying rent in retirement.

895
00:37:08.025 --> 00:37:09.285
So we might see changes there,

896
00:37:09.365 --> 00:37:12.285
but currently the retirement living standards are based on

897
00:37:12.345 --> 00:37:15.885
having no housing costs and after, um, tax

898
00:37:15.905 --> 00:37:17.365
and your pension income has come off

899
00:37:18.145 --> 00:37:19.805
And there's another one, is it a good idea

900
00:37:19.865 --> 00:37:22.245
to access your flexi pension?

901
00:37:23.545 --> 00:37:25.005
Um, Claire, what's the answer to that?

902
00:37:25.545 --> 00:37:27.165
Ah, so this is an interesting one.

903
00:37:27.185 --> 00:37:30.725
So, um, kind of, again, it's a bit of an, it depends.

904
00:37:31.225 --> 00:37:34.405
So often, um, we might see, especially for someone

905
00:37:34.545 --> 00:37:38.605
who maybe has quite a lot of in the way of assets, um,

906
00:37:38.755 --> 00:37:41.205
that if you've got kind of, you know, um,

907
00:37:41.205 --> 00:37:43.485
other investments like ISAs, things like that,

908
00:37:43.485 --> 00:37:45.525
then it might be better to take some

909
00:37:45.525 --> 00:37:48.205
of your other investments before you access your pensions.

910
00:37:49.025 --> 00:37:51.445
Now you might think that sounds a little bit odds,

911
00:37:51.445 --> 00:37:54.845
but that's because pensions are normally inheritance tax

912
00:37:54.915 --> 00:37:57.405
free and currently they can be passed on

913
00:37:57.405 --> 00:38:00.045
to your beneficiaries if you die under 75

914
00:38:00.045 --> 00:38:03.965
and when you pass them on, um, then it's um, you know,

915
00:38:03.965 --> 00:38:06.085
they're free of um, income tax as well.

916
00:38:06.185 --> 00:38:09.085
So actually sometimes it's better to use some of your other,

917
00:38:09.545 --> 00:38:13.325
um, assets before you'd then use your pension assets.

918
00:38:14.935 --> 00:38:19.325
Sorry about that. I had to cough. Timing is everything.

919
00:38:19.755 --> 00:38:22.005
Okay, so we got another question, which is someone saying

920
00:38:22.815 --> 00:38:24.485
59,000 pounds a year,

921
00:38:25.375 --> 00:38:26.375
Carry on for that. Sorry.

922
00:38:26.375 --> 00:38:28.845
So 59,000 pounds a year for a retired couple

923
00:38:28.905 --> 00:38:31.725
to be comfortable seems really high, doesn't it?

924
00:38:31.985 --> 00:38:34.645
Now? I think, um, it's useful to go on

925
00:38:34.645 --> 00:38:35.885
to the term, term living standards.

926
00:38:36.125 --> 00:38:38.285
I think they're great because you can really see everything

927
00:38:38.285 --> 00:38:39.445
that you could buy or spend.

928
00:38:39.505 --> 00:38:42.685
So even down to kind of the type of car, um, you know,

929
00:38:42.705 --> 00:38:45.245
or the age of car you could have the type of holidays,

930
00:38:45.245 --> 00:38:47.925
whether you can afford weekends away in the uk.

931
00:38:48.465 --> 00:38:51.005
Um, so yeah, it, it does seem quite a lot

932
00:38:51.185 --> 00:38:52.285
for, for a lot of people.

933
00:38:52.945 --> 00:38:55.125
Um, but it's worth kind of going on

934
00:38:55.125 --> 00:38:57.125
and seeing, well actually that's the type

935
00:38:57.125 --> 00:38:58.405
of retirement I would like

936
00:38:58.665 --> 00:39:00.965
or that's the type of retirement I actually kind

937
00:39:00.965 --> 00:39:02.285
of want to aim for.

938
00:39:02.825 --> 00:39:04.525
Um, but you know,

939
00:39:04.665 --> 00:39:06.925
you would be very comfortable on, um,

940
00:39:06.925 --> 00:39:07.965
comfortable. That's for sure.

941
00:39:08.285 --> 00:39:09.965
So the clues in the name, yes.

942
00:39:09.965 --> 00:39:13.405
Okay, so this is something that I covered a moment ago.

943
00:39:13.585 --> 00:39:15.285
Um, but it is a really common question.

944
00:39:15.435 --> 00:39:18.725
It's a good one to ask, which is some saying, um,

945
00:39:19.065 --> 00:39:20.565
Dan saying I have three pensions,

946
00:39:21.545 --> 00:39:25.205
can I withdraw my 25% tax free cash from each one?

947
00:39:25.305 --> 00:39:26.885
And the answer is yes, you can.

948
00:39:27.025 --> 00:39:31.485
So if you have several different pensions, then you can take

949
00:39:31.485 --> 00:39:33.405
that tax free amount from each one.

950
00:39:33.785 --> 00:39:34.925
And Johnny, I think, have you got

951
00:39:34.925 --> 00:39:35.965
some more questions coming through?

952
00:39:36.395 --> 00:39:38.245
Yeah, so we, we have one here.

953
00:39:38.305 --> 00:39:42.605
Um, can I donate my state pension, um, to my partner?

954
00:39:43.265 --> 00:39:48.005
So, um, if yeah, is that something that we can do if,

955
00:39:48.105 --> 00:39:49.645
if I want to?

956
00:39:50.905 --> 00:39:52.645
Um, I think that's what they're asking.

957
00:39:52.665 --> 00:39:54.325
Is that what they're asking Rachel? Can

958
00:39:54.325 --> 00:39:56.685
You, can you pass your state pension

959
00:39:57.285 --> 00:39:58.565
entitlement onto your partner?

960
00:39:58.765 --> 00:40:00.965
I think that, that, that's what the question is high.

961
00:40:01.185 --> 00:40:02.485
So sadly not you build

962
00:40:02.485 --> 00:40:03.765
up entitlement to the state pension.

963
00:40:04.305 --> 00:40:08.685
Um, you know, if you um, reach state pension age Yeah,

964
00:40:08.685 --> 00:40:12.405
after the 5th of April, 2016, then it's always on kind

965
00:40:12.405 --> 00:40:13.605
of your own rights.

966
00:40:13.635 --> 00:40:15.445
Yeah, you've built up your own contribution,

967
00:40:15.865 --> 00:40:19.005
but, um, on your death, that's it.

968
00:40:19.105 --> 00:40:21.405
You know, the kinda state pension has come to an end.

969
00:40:21.465 --> 00:40:24.085
Now if you're entitled to basic state pension,

970
00:40:24.095 --> 00:40:25.565
which was the system that was in

971
00:40:26.105 --> 00:40:29.085
before, um, the 6th of April, 2016,

972
00:40:29.675 --> 00:40:32.765
then you can increase your state pension, um,

973
00:40:33.135 --> 00:40:35.845
based on your partner's, your husband

974
00:40:35.905 --> 00:40:39.085
or wife's, um, national insurance record.

975
00:40:39.345 --> 00:40:41.685
So, um, but you would know about that.

976
00:40:41.785 --> 00:40:45.885
But again, gov.uk is really clear on, um, the differences

977
00:40:45.885 --> 00:40:47.125
between someone who'd reached it

978
00:40:47.125 --> 00:40:49.165
before the 6th of April, 2016

979
00:40:49.185 --> 00:40:50.885
and those who'd reached it afterwards.

980
00:40:55.085 --> 00:40:56.325
Brilliant, brilliant. Thank you. Thank you.

981
00:40:56.385 --> 00:40:58.405
That's really helpful. Well, that, that's fantastic.

982
00:40:58.685 --> 00:41:01.045
I mean, you had load loads of questions, so, um,

983
00:41:01.785 --> 00:41:05.965
Claire it is just, it isn't a, an easy subject to all

984
00:41:05.965 --> 00:41:09.245
of this, is it, it is quite a tricky understanding

985
00:41:09.245 --> 00:41:11.325
that the percentage of tax you take,

986
00:41:11.585 --> 00:41:14.965
but I'm, I'm hoping it is become a a lot, lot clearer.

987
00:41:14.965 --> 00:41:17.725
We've got loads of questions Claire come coming in on this.

988
00:41:18.345 --> 00:41:21.485
Um, yeah. Um, especially about the state pension.

989
00:41:21.825 --> 00:41:24.045
The state pension, we've got lots coming in, haven't we,

990
00:41:24.175 --> 00:41:25.605
about the state pension as

991
00:41:25.605 --> 00:41:26.605
Well. That's the state pension is a topic

992
00:41:26.605 --> 00:41:27.765
in itself, isn't it?

993
00:41:27.765 --> 00:41:29.725
So yeah, there is, there is lots on that.

994
00:41:29.785 --> 00:41:33.885
But I think one of the main themes I'm seeing is, um, a lot

995
00:41:33.885 --> 00:41:36.925
of people are, are questioning their, their record

996
00:41:37.265 --> 00:41:38.805
and wanting to know the national

997
00:41:39.325 --> 00:41:40.925
national insurance contributions they've made.

998
00:41:40.925 --> 00:41:43.205
So the best thing to do, I think all round is to go

999
00:41:43.225 --> 00:41:44.885
and get that, uh, forecast,

1000
00:41:44.885 --> 00:41:46.245
isn't it from the government site

1001
00:41:46.305 --> 00:41:48.405
and have a look, have a look for yourself. Yeah,

1002
00:41:49.325 --> 00:41:50.405
Actually I think getting

1003
00:41:50.405 --> 00:41:52.605
that state pension forecast is really important.

1004
00:41:53.185 --> 00:41:56.965
Um, and certainly, um, kind of as you're getting closer

1005
00:41:57.145 --> 00:41:59.565
to retirement, it's essential as Sarah said,

1006
00:41:59.565 --> 00:42:00.725
because you might be able

1007
00:42:00.725 --> 00:42:03.485
to top up your state pension record, um,

1008
00:42:03.505 --> 00:42:05.725
and you might be able to go back quite a lot of years.

1009
00:42:06.265 --> 00:42:08.805
Um, but there's that deadline of April next year.

1010
00:42:08.905 --> 00:42:10.685
So it's really crucial to get

1011
00:42:10.685 --> 00:42:13.605
that if you're younger then you probably are going

1012
00:42:13.605 --> 00:42:14.925
to make up the 35 years

1013
00:42:14.925 --> 00:42:16.885
of national insurance, um, contributions.

1014
00:42:16.985 --> 00:42:18.405
So it's not as crucial,

1015
00:42:18.545 --> 00:42:20.765
but I would say it's really worth looking at

1016
00:42:20.765 --> 00:42:22.525
that the closer you're getting to retirement.

1017
00:42:22.905 --> 00:42:25.285
And in fact, our research that we did uh, last year found

1018
00:42:25.285 --> 00:42:28.045
that I think less than, uh, only around half

1019
00:42:28.065 --> 00:42:30.805
of people had actually checked their state pension forecast

1020
00:42:30.825 --> 00:42:32.125
and then fewer people in

1021
00:42:32.125 --> 00:42:34.245
that had checked their national insurance record

1022
00:42:34.265 --> 00:42:35.365
to see if there are gaps there.

1023
00:42:35.465 --> 00:42:38.245
But you know, your state pension is gonna be the foundation

1024
00:42:38.265 --> 00:42:39.805
of your income in retirement.

1025
00:42:39.865 --> 00:42:41.125
So as Claire's saying,

1026
00:42:41.125 --> 00:42:42.365
and as you know, Johnny's making the point,

1027
00:42:42.365 --> 00:42:44.325
it is really important to find out what you don't want

1028
00:42:44.325 --> 00:42:46.405
to do is to get to state pension age

1029
00:42:46.465 --> 00:42:48.725
and then find that you are not getting the full state

1030
00:42:48.725 --> 00:42:50.685
pension or you're getting less than you thought you would

1031
00:42:51.025 --> 00:42:52.365
and it's all a bit of a nasty shock.

1032
00:42:52.465 --> 00:42:55.045
So once you've got hold of your state pension forecast,

1033
00:42:55.275 --> 00:42:57.245
then you've, that information is really powerful

1034
00:42:57.245 --> 00:42:59.085
and then you can work out what the next steps might be.

1035
00:42:59.635 --> 00:43:01.925
Yeah. Brilliant. Very well one.

1036
00:43:02.075 --> 00:43:03.925
Well, can I just clear up one thing? Yeah.

1037
00:43:03.925 --> 00:43:06.725
Because that, I see this a lot when we reference the, um,

1038
00:43:06.725 --> 00:43:09.885
retirement living standards guidelines and, and I know,

1039
00:43:10.705 --> 00:43:13.205
and it's always a lot of questions come out of this,

1040
00:43:13.345 --> 00:43:14.685
so I just want to clear this one up,

1041
00:43:14.685 --> 00:43:18.845
but the, the retirement living standards, uh, figures, um,

1042
00:43:19.345 --> 00:43:20.565
the income figures, does

1043
00:43:20.565 --> 00:43:23.045
that amount include the state pension

1044
00:43:23.045 --> 00:43:24.245
amount or is that separate?

1045
00:43:24.645 --> 00:43:26.365
'cause we, we always get this question. Mm-Hmm.

1046
00:43:26.365 --> 00:43:27.645
So it's like to clarify it

1047
00:43:28.265 --> 00:43:29.365
And it's a really good question

1048
00:43:29.585 --> 00:43:32.605
and basically what the retirement living standards do is

1049
00:43:32.605 --> 00:43:34.445
tell you the income that you would need

1050
00:43:34.465 --> 00:43:35.485
for certain lifestyle.

1051
00:43:35.585 --> 00:43:37.205
So it doesn't really tell you

1052
00:43:37.205 --> 00:43:38.445
where you get that income from.

1053
00:43:38.505 --> 00:43:41.165
But we assume even though our, our

1054
00:43:41.845 --> 00:43:45.165
research from these DW p fig DWP figures, we analyse shows

1055
00:43:45.165 --> 00:43:48.325
that actually only half of people get the full amount

1056
00:43:48.325 --> 00:43:50.085
of state pension at the moment of those

1057
00:43:50.085 --> 00:43:51.085
who get the new state pension.

1058
00:43:51.425 --> 00:43:53.845
But we're gonna assume that you get the full state pension.

1059
00:43:53.945 --> 00:43:56.045
So as Claire was saying, that's currently

1060
00:43:56.045 --> 00:43:59.085
around a smidge over 11 and a half thousand pounds a year.

1061
00:43:59.905 --> 00:44:01.285
But where you get the income from

1062
00:44:01.345 --> 00:44:02.525
is sort of really down to you.

1063
00:44:02.995 --> 00:44:05.445
What the retirement living standards do is show you

1064
00:44:06.065 --> 00:44:08.085
how much certain lifestyles cost.

1065
00:44:08.805 --> 00:44:11.125
Assuming as Claire said, you don't have rental

1066
00:44:11.125 --> 00:44:12.645
or mortgage to pay and assuming

1067
00:44:12.755 --> 00:44:15.005
that tax has already been paid on any

1068
00:44:15.025 --> 00:44:16.165
pen pension income you get.

1069
00:44:16.835 --> 00:44:18.085
Yeah, that's right. So it's just,

1070
00:44:18.085 --> 00:44:19.285
you're making up that difference.

1071
00:44:19.285 --> 00:44:21.965
You're going to have to work out is your pension pot added

1072
00:44:22.105 --> 00:44:24.165
to the state pension you'll receive going to be enough.

1073
00:44:24.665 --> 00:44:27.445
But as we also mentioned, lots of people want to retire

1074
00:44:27.705 --> 00:44:30.845
before state pension age, so they would have to fill

1075
00:44:30.845 --> 00:44:32.900
that whole amount without state pension.

1076
00:44:33.665 --> 00:44:35.485
So you might need to take a little bit more out

1077
00:44:35.485 --> 00:44:36.565
and draw down, for example.

1078
00:44:37.145 --> 00:44:39.045
Um, and then when you reach state pension age,

1079
00:44:39.045 --> 00:44:40.125
you could reduce that amount

1080
00:44:40.125 --> 00:44:41.365
you're taking out and draw down.

1081
00:44:41.745 --> 00:44:44.005
Um, so it just depends when you want to retire

1082
00:44:44.345 --> 00:44:45.925
and how much you want to retire on.

1083
00:44:47.135 --> 00:44:49.845
Great. Still. Thank You. Brilliant. Well, um, can I

1084
00:44:49.845 --> 00:44:51.445
Wrap up with one final question? Right?

1085
00:44:51.825 --> 00:44:54.965
Do you want me to and simple one stop? No, no more

1086
00:44:55.145 --> 00:44:56.525
Simple one, but I wanna try

1087
00:44:56.525 --> 00:44:57.645
and help the audience with this one.

1088
00:44:57.645 --> 00:45:01.085
So we mentioned this earlier, I think about, um, uh,

1089
00:45:01.155 --> 00:45:03.285
beneficiary forms, nomination forms,

1090
00:45:03.525 --> 00:45:05.325
I think the expression of wish to get called different things.

1091
00:45:05.705 --> 00:45:08.525
Um, how important is it to make sure

1092
00:45:08.525 --> 00:45:09.765
that this form is up to date?

1093
00:45:10.905 --> 00:45:13.005
So I would say it's always really important.

1094
00:45:13.195 --> 00:45:14.765
Make sure these forms, you know,

1095
00:45:14.865 --> 00:45:17.805
you look at 'em maybe every year, um,

1096
00:45:18.185 --> 00:45:20.685
it might not have changed, but just have a look

1097
00:45:20.685 --> 00:45:21.925
and make sure it's really clear.

1098
00:45:22.425 --> 00:45:25.725
Um, and you know, then you're letting the pension provider

1099
00:45:25.725 --> 00:45:28.125
or the pension scheme know who, who you would like

1100
00:45:28.125 --> 00:45:30.565
to receive your money because sometimes things change.

1101
00:45:31.305 --> 00:45:32.605
Um, and you know,

1102
00:45:32.605 --> 00:45:34.965
often people have filled them in when they started a new job

1103
00:45:35.465 --> 00:45:37.445
and then they never fill them in again.

1104
00:45:37.445 --> 00:45:39.525
And you know what, and I always tell the story of,

1105
00:45:39.545 --> 00:45:40.605
of a forum I saw

1106
00:45:40.605 --> 00:45:42.885
that was 20 years old when the gentleman was married

1107
00:45:42.885 --> 00:45:45.925
to his first wife by the time he died 20 years later,

1108
00:45:45.955 --> 00:45:47.325
he'd been married another four times

1109
00:45:47.785 --> 00:45:49.045
but never changed his form.

1110
00:45:49.105 --> 00:45:51.165
So I think that just kind of shows that, you know,

1111
00:45:51.165 --> 00:45:52.645
there was a lot of different children as well,

1112
00:45:52.645 --> 00:45:56.205
that it's very difficult as a, as a pension provider to try

1113
00:45:56.205 --> 00:45:58.205
and work out who should be receiving the money.

1114
00:45:58.205 --> 00:46:01.285
We get lots of evidence, um, from all different parties.

1115
00:46:01.545 --> 00:46:05.445
But actually the best evidence is you looking at your forum,

1116
00:46:05.445 --> 00:46:08.285
filling in who you would like to receive, um, your money.

1117
00:46:08.825 --> 00:46:10.365
And I dunno if it's just worth saying Claire

1118
00:46:10.545 --> 00:46:13.005
as a final thought because those are two ways

1119
00:46:13.005 --> 00:46:15.325
that you can sort of leave money in a way.

1120
00:46:15.325 --> 00:46:17.565
One is where you say, I want this person

1121
00:46:17.705 --> 00:46:19.485
or these people to get my pension money

1122
00:46:19.485 --> 00:46:21.965
and the other is I would like 'em to get the pension money.

1123
00:46:22.045 --> 00:46:23.685
But the final say goes to the pension company,

1124
00:46:23.705 --> 00:46:25.485
and again, this is one we get a lot of questions about

1125
00:46:25.485 --> 00:46:26.845
because it almost feels a bit like,

1126
00:46:27.235 --> 00:46:29.045
well if I do the second option

1127
00:46:29.585 --> 00:46:31.965
is the pension company gonna actually pay the money out?

1128
00:46:31.985 --> 00:46:34.325
But just explain what the advantage of that is.

1129
00:46:34.485 --> 00:46:35.445
'cause I think it's really important for

1130
00:46:35.445 --> 00:46:36.005
people to understand.

1131
00:46:36.315 --> 00:46:39.245
Yeah, so, so the advantage is that, um,

1132
00:46:39.595 --> 00:46:42.645
your pension money wouldn't be subject to inheritance tax.

1133
00:46:43.265 --> 00:46:45.805
And you might think, well actually I've, you know,

1134
00:46:46.205 --> 00:46:48.205
I don't have a massive amount of assets

1135
00:46:48.345 --> 00:46:51.805
so I wouldn't be subject to inheritance tax anyway.

1136
00:46:52.065 --> 00:46:54.645
But the other advantage is it's paid out much quicker

1137
00:46:54.875 --> 00:46:57.845
because if you have to wait on probate

1138
00:46:57.905 --> 00:46:59.205
or confirmation in Scotland,

1139
00:46:59.355 --> 00:47:00.965
that can take six to nine months.

1140
00:47:00.965 --> 00:47:03.085
Whereas the pension company can work out who

1141
00:47:03.085 --> 00:47:04.525
to pay your money to quite quickly.

1142
00:47:05.385 --> 00:47:08.645
And in complex situations where there's not an expression

1143
00:47:08.645 --> 00:47:10.005
of wish form or it's out of date,

1144
00:47:10.345 --> 00:47:11.885
the pension company can look at

1145
00:47:11.885 --> 00:47:14.205
who they think you would like to receive the money

1146
00:47:14.225 --> 00:47:16.965
by talking to family solicitors,

1147
00:47:16.965 --> 00:47:18.445
accountants, that kind of thing.

1148
00:47:18.545 --> 00:47:20.845
So there's a lot more flexibility

1149
00:47:21.515 --> 00:47:24.525
when it says exactly who is to be paid.

1150
00:47:25.165 --> 00:47:27.405
I have seen situations where it's had an ex-spouse

1151
00:47:27.465 --> 00:47:29.725
and that money has had to be paid to the ex spouse

1152
00:47:29.795 --> 00:47:31.725
because the form hasn't been changed.

1153
00:47:31.945 --> 00:47:36.165
So that's why it's, you would normally see it as it's,

1154
00:47:36.165 --> 00:47:37.645
you know, called an expression of wish.

1155
00:47:37.905 --> 00:47:39.765
And um, and it's, you know,

1156
00:47:40.065 --> 00:47:42.925
the pension company make the sort of ultimate decision,

1157
00:47:42.985 --> 00:47:45.165
but it is based on evidence of what you would want.

1158
00:47:47.765 --> 00:47:52.285
Brilliant. Well thank you so much to Sarah and Claire.

1159
00:47:52.475 --> 00:47:53.645
It's, it's been fantastic.

1160
00:47:53.775 --> 00:47:56.805
We've got another Royal London, um, show tomorrow.

1161
00:47:57.105 --> 00:48:00.685
It is actually, I'm gonna be joining Claire on the set at

1162
00:48:00.745 --> 00:48:02.805
um, ten four, uh, 10 to 10 45.

1163
00:48:03.045 --> 00:48:04.765
Tomorrow we're gonna talk about the Yeah, very good.

1164
00:48:04.905 --> 00:48:07.085
Um, how shrink the gender pensions gap.

1165
00:48:07.085 --> 00:48:09.525
So if you're not booked onto that show, make sure you do it.

1166
00:48:09.525 --> 00:48:12.005
It's gonna be a great show. Um, thank you to you both.

1167
00:48:12.005 --> 00:48:14.565
Thank you to um, Sarah, thank you to Claire.

1168
00:48:15.025 --> 00:48:17.085
Um, and Rachel, thank you to you for Thank you.

1169
00:48:17.085 --> 00:48:18.805
With all the thank thank you to you. Oh, thank you.

1170
00:48:18.805 --> 00:48:20.685
Thank to everyone. Thank you. Yeah, thanks everyone joining.

1171
00:48:20.855 --> 00:48:22.605
We'll see you later. Take care. Bye.

0
00:00:07.935 --> 00:00:09.125
Hello, hello, hello.

1
00:00:09.185 --> 00:00:12.565
And welcome to the first show of the day of our last day

2
00:00:12.825 --> 00:00:15.205
of the Pension Awareness Campaign, live shows.

3
00:00:15.615 --> 00:00:19.485
Hello, you all. Well, great, great. We like to hear that.

4
00:00:19.805 --> 00:00:21.085
I think I could hear you in the background.

5
00:00:21.345 --> 00:00:23.325
Um, I'm joined by Claire today

6
00:00:23.325 --> 00:00:24.445
from Royal London. How are you?

7
00:00:24.665 --> 00:00:26.165
I'm good. Thank you, Johnny. Brilliant.

8
00:00:26.315 --> 00:00:28.525
It's the second show you're doing for us. Yeah.

9
00:00:28.705 --> 00:00:31.285
And do you feel, do you feel energized for this morning?

10
00:00:31.455 --> 00:00:33.485
Definitely. It's always good fun being here.

11
00:00:33.805 --> 00:00:35.005
Brilliant, brilliant. And, and welcome.

12
00:00:35.055 --> 00:00:36.285
Today we're gonna talk about how

13
00:00:36.285 --> 00:00:39.125
to shrink the pensions gender gap,

14
00:00:39.255 --> 00:00:41.005
which is such an important subject.

15
00:00:41.345 --> 00:00:42.565
And we're going to, um, we're gonna

16
00:00:42.565 --> 00:00:43.645
help do that today, aren't we?

17
00:00:44.035 --> 00:00:46.125
Hope so. Yeah. Well, we're gonna, yeah. Yeah. Brilliant.

18
00:00:46.385 --> 00:00:48.325
Um, and also we're joined by Rachel.

19
00:00:48.545 --> 00:00:51.485
Can we say hello to Rachel? Oh, there she is.

20
00:00:51.695 --> 00:00:53.565
Hello. Good morning everyone. How are

21
00:00:53.565 --> 00:00:54.565
You? How are you feeling this morning?

22
00:00:54.565 --> 00:00:55.085
Yeah,

23
00:00:55.105 --> 00:00:56.105
I'm feeling good. I'm

24
00:00:56.105 --> 00:00:57.405
sad. It's the last day though.

25
00:00:57.595 --> 00:00:59.205
It's gone really quickly, hasn't it?

26
00:00:59.205 --> 00:01:00.605
It's, it has, it's just flown by.

27
00:01:00.825 --> 00:01:03.485
It has. It has. And, um, we've been joined

28
00:01:03.505 --> 00:01:05.365
for the three days through our partners.

29
00:01:05.475 --> 00:01:07.245
Obviously Claire's here from Roland,

30
00:01:07.265 --> 00:01:09.685
but Roland are actually partnering with us this year.

31
00:01:09.685 --> 00:01:11.325
They're partnering with the official pension awareness

32
00:01:11.645 --> 00:01:13.725
campaign, which we're very, very excited about.

33
00:01:13.725 --> 00:01:16.005
If we could get the on screen big

34
00:01:16.005 --> 00:01:17.565
so we can see the, oh, there we go.

35
00:01:17.775 --> 00:01:20.925
There we go. Um, they're sponsoring the campaign this year,

36
00:01:20.925 --> 00:01:22.325
partnering with the campaign this year.

37
00:01:22.325 --> 00:01:23.925
So we're very excited about that.

38
00:01:24.505 --> 00:01:27.045
So, um, before we get started, I wanted

39
00:01:27.045 --> 00:01:28.765
to tell everyone out there about the website

40
00:01:28.765 --> 00:01:30.165
that we've created for them this year.

41
00:01:30.465 --> 00:01:32.885
Um, basically it's a place where you can go to

42
00:01:33.455 --> 00:01:34.605
throughout the year

43
00:01:34.785 --> 00:01:36.765
and we can use it as, you can use it as a resource.

44
00:01:36.765 --> 00:01:38.365
If you can go full screen with that, that'd be great.

45
00:01:38.425 --> 00:01:40.005
Um, brilliant. Here we go.

46
00:01:40.345 --> 00:01:42.285
So today, um, we've got some more shows

47
00:01:42.285 --> 00:01:43.685
after this show where you can go on there.

48
00:01:43.685 --> 00:01:44.805
We've got the timetable.

49
00:01:45.065 --> 00:01:46.365
If we just go down, you'll have

50
00:01:46.365 --> 00:01:47.485
to see the shows we've got today.

51
00:01:47.485 --> 00:01:49.805
We've got Gabble with the Geeks, um, the Pension Geeks,

52
00:01:49.805 --> 00:01:51.725
which is for HR and pension managers later.

53
00:01:52.265 --> 00:01:54.605
Um, but we've also got DB or not to be.

54
00:01:54.605 --> 00:01:56.245
So just group are gonna be joining us

55
00:01:56.305 --> 00:01:59.525
and we're gonna be talking about DB pensions.

56
00:01:59.625 --> 00:02:01.085
So you'll have to book onto that show there.

57
00:02:01.145 --> 00:02:03.405
But not all, not just that.

58
00:02:03.425 --> 00:02:04.685
On this site we've got,

59
00:02:04.945 --> 00:02:06.765
can we have a look at the Catchup section, James?

60
00:02:06.785 --> 00:02:09.365
So if we click on that, um, this is

61
00:02:09.375 --> 00:02:11.205
where you can watch all the shows.

62
00:02:11.265 --> 00:02:13.325
So if you've missed any shows this week

63
00:02:13.345 --> 00:02:15.085
or you want to see the show with Sarah

64
00:02:15.145 --> 00:02:17.925
and Claire yesterday, you can go onto this.

65
00:02:18.105 --> 00:02:19.405
Um, this catch repair.

66
00:02:19.405 --> 00:02:21.325
If we just go down, James, you'll have

67
00:02:21.325 --> 00:02:23.165
to see all the shows from this week.

68
00:02:23.465 --> 00:02:25.805
Are there also, just

69
00:02:25.805 --> 00:02:27.085
before we go, I just want to show,

70
00:02:27.375 --> 00:02:28.685
we've got an article section.

71
00:02:29.475 --> 00:02:31.565
Sometimes I miss this out when I'm telling people,

72
00:02:31.565 --> 00:02:33.045
but I wanna make sure that you see this.

73
00:02:33.075 --> 00:02:35.245
It's got some really good articles on there,

74
00:02:35.495 --> 00:02:38.085
brand new articles for the show this year.

75
00:02:38.505 --> 00:02:40.685
Um, yeah. So make sure you check it out.

76
00:02:40.685 --> 00:02:42.005
Make sure you check it out. Right.

77
00:02:42.015 --> 00:02:43.565
Let's get on with the show how

78
00:02:43.565 --> 00:02:45.365
to shrink the pension Gender gap,

79
00:02:45.625 --> 00:02:47.045
Claire, how we're gonna do it.

80
00:02:47.755 --> 00:02:51.405
Well, so we need to talk about the gender pension gap,

81
00:02:51.405 --> 00:02:52.645
and that's one of the things that we're

82
00:02:52.645 --> 00:02:53.725
going to be covering off today.

83
00:02:53.785 --> 00:02:56.925
But first of all, you know, we need to know

84
00:02:56.925 --> 00:02:58.965
that there is a large difference between the retirement

85
00:02:59.240 --> 00:03:00.520
that men and women women have.

86
00:03:00.520 --> 00:03:02.965
But I do want to bust a bit of a myth. Go on.

87
00:03:02.985 --> 00:03:05.525
And that's that women aren't as interested in pensions. Now.

88
00:03:05.615 --> 00:03:07.205
Royal London just carried out some

89
00:03:07.205 --> 00:03:08.485
workplace pension research.

90
00:03:08.585 --> 00:03:11.805
Yes. And we found that 48% of people said

91
00:03:11.805 --> 00:03:13.885
that a pension was the most important benefit

92
00:03:13.905 --> 00:03:15.805
to them when they went for a new job.

93
00:03:16.335 --> 00:03:19.245
There wasn't a gender difference at all.

94
00:03:19.305 --> 00:03:21.165
So I think that's quite interesting, Johnny. Okay.

95
00:03:21.905 --> 00:03:26.525
But, you know, women do end up worse off in retirement now.

96
00:03:26.675 --> 00:03:28.725
I've been interested in the gender pension gap

97
00:03:28.725 --> 00:03:29.885
for quite a long time now.

98
00:03:30.075 --> 00:03:33.565
Okay. Um, what I want to do is think about some

99
00:03:33.565 --> 00:03:35.245
of the issues and the reasons behind it,

100
00:03:35.265 --> 00:03:37.685
but I also want to think about just some ideas

101
00:03:37.825 --> 00:03:40.805
and solutions that that might work for individuals,

102
00:03:40.865 --> 00:03:42.085
for couples to discuss.

103
00:03:42.225 --> 00:03:44.925
Yep. Um, I'm 46. I've got two

104
00:03:45.165 --> 00:03:46.165
Children. You don't look quite sorry, the

105
00:03:46.165 --> 00:03:47.565
lines there. You don't look.

106
00:03:47.565 --> 00:03:50.125
46 Claire. You've got three kids and 46.

107
00:03:50.285 --> 00:03:51.725
I can't believe it. I know, I know.

108
00:03:51.745 --> 00:03:53.365
So they're 15. You put it in the script.

109
00:03:53.685 --> 00:03:56.245
I know. 15, 18, and 20. Thanks Johnny.

110
00:03:56.665 --> 00:04:00.205
Um, so I really do understand some of the issues. Thank you.

111
00:04:00.665 --> 00:04:03.365
Um, I do understand some of the issues for the gap.

112
00:04:03.905 --> 00:04:06.205
Um, I always think it's quite funny.

113
00:04:06.555 --> 00:04:09.445
Some of my friends, um, thought pensions

114
00:04:09.745 --> 00:04:11.645
and actually my job were a bit dull.

115
00:04:11.645 --> 00:04:13.685
Yeah, I know you find that really hard to believe.

116
00:04:14.465 --> 00:04:16.085
But it's really interesting

117
00:04:16.315 --> 00:04:18.685
that actually now same friends are coming

118
00:04:18.685 --> 00:04:22.605
and asking me lots of questions about pensions, either them

119
00:04:22.665 --> 00:04:24.245
or actually their partners as well.

120
00:04:24.245 --> 00:04:27.325
Asking, you know, what the impact of decisions they made.

121
00:04:27.355 --> 00:04:30.805
Like, you know, one person going part-time, what impact

122
00:04:30.805 --> 00:04:32.805
that has on their financial future.

123
00:04:33.345 --> 00:04:35.325
And I think the key point is that people wish

124
00:04:35.325 --> 00:04:36.925
that they had known more at the time.

125
00:04:37.065 --> 00:04:40.045
So one of the things that I really want to talk about is how

126
00:04:40.045 --> 00:04:41.885
to learn to love your pension. Now,

127
00:04:42.105 --> 00:04:44.765
We love that I got This thing.

128
00:04:44.885 --> 00:04:46.685
I love pensions. Now, you don't have

129
00:04:46.685 --> 00:04:48.245
to be a pensions geek like us.

130
00:04:49.065 --> 00:04:51.805
Um, but you do just need to be a bit more aware

131
00:04:51.805 --> 00:04:54.805
of your financial future and, you know, kind of pensions

132
00:04:54.805 --> 00:04:55.845
and, and what it means.

133
00:04:56.265 --> 00:04:58.445
Yep. So should we get into the nitty gritty, then?

134
00:04:58.675 --> 00:05:00.085
Tell, tell us everything that we need

135
00:05:00.085 --> 00:05:01.685
to know today to, to help us.

136
00:05:02.115 --> 00:05:05.565
Okay. So the gender pension gap is actually kind of, it's

137
00:05:05.565 --> 00:05:07.725
as a result of many different factors.

138
00:05:08.265 --> 00:05:10.285
Now, one of those is the gender pay gap.

139
00:05:10.425 --> 00:05:13.205
Now, that's the difference between the average hourly amount

140
00:05:13.205 --> 00:05:17.085
that men and women, um, have now legislation over the years,

141
00:05:17.315 --> 00:05:19.885
many, many years has helped to equalize pay

142
00:05:20.265 --> 00:05:22.805
and the gender pay gap has decreased.

143
00:05:22.805 --> 00:05:24.565
And we've also seen, you know, lots

144
00:05:24.565 --> 00:05:26.645
of progress in the workplace promoting

145
00:05:26.645 --> 00:05:28.245
gender equality and things like that.

146
00:05:29.185 --> 00:05:31.245
But when it comes to retirement

147
00:05:31.385 --> 00:05:33.885
and achieving financial security in retirement,

148
00:05:34.215 --> 00:05:35.965
there hasn't been as much progress.

149
00:05:35.985 --> 00:05:38.085
And we'll come on to the reasons why in a second.

150
00:05:39.145 --> 00:05:41.925
The gender pension gap isn't just about pay.

151
00:05:42.135 --> 00:05:44.885
There are, as I mentioned, lots of different reasons. Mm.

152
00:05:45.565 --> 00:05:47.045
I, I assumed if we sorted out

153
00:05:47.045 --> 00:05:48.165
one, the other one would be sorted out.

154
00:05:48.165 --> 00:05:49.445
Ob obviously not.

155
00:05:49.705 --> 00:05:52.405
Um, so how can we work out the pension pension

156
00:05:52.405 --> 00:05:53.525
gender gap? So

157
00:05:53.525 --> 00:05:54.525
The gender pension gap? Well,

158
00:05:54.525 --> 00:05:56.085
it's the difference between men

159
00:05:56.085 --> 00:05:58.405
and women's, um, pension pots.

160
00:05:58.425 --> 00:06:00.565
Now that can be at different stages

161
00:06:00.585 --> 00:06:02.405
during their lives the size of their pension,

162
00:06:02.545 --> 00:06:04.405
or it can be retirement income once

163
00:06:04.405 --> 00:06:05.485
they've actually retired.

164
00:06:06.225 --> 00:06:10.125
Now a study by the department for working pensions found out

165
00:06:10.125 --> 00:06:14.805
that the gender pensions gap in private pensions is 35%.

166
00:06:14.865 --> 00:06:17.765
So for every 100 pounds that a man has in their pension,

167
00:06:18.285 --> 00:06:19.965
a woman has 65 pounds.

168
00:06:21.185 --> 00:06:25.405
But sorry to say this, Johnny, but women do live for longer.

169
00:06:25.545 --> 00:06:28.925
So actually women should need more in their pension.

170
00:06:29.065 --> 00:06:30.125
Of course. Of course. Um,

171
00:06:30.785 --> 00:06:33.045
and if you don't have private pensions,

172
00:06:33.825 --> 00:06:35.965
the only other option is the state pension.

173
00:06:36.025 --> 00:06:38.845
Mm-Hmm. That we did some research into state pensions

174
00:06:38.845 --> 00:06:42.165
as well, and we found out that three in 10 women

175
00:06:42.265 --> 00:06:43.685
who receive the state pension

176
00:06:44.355 --> 00:06:46.365
rely solely on the state pension.

177
00:06:46.515 --> 00:06:49.845
Okay. And you know, actually we also found out, um,

178
00:06:49.855 --> 00:06:52.885
doing some analysis that just over half of people

179
00:06:52.945 --> 00:06:55.565
who receive the state pension receives the full amount.

180
00:06:55.665 --> 00:06:57.645
Now the full amount, if you are entitled to it,

181
00:06:58.025 --> 00:07:00.205
is 221 pounds, 20 a week.

182
00:07:00.275 --> 00:07:02.445
It's crazy. Yeah. It's not a huge amount

183
00:07:02.445 --> 00:07:03.725
of money to live on Johnny.

184
00:07:03.865 --> 00:07:07.085
No, no. Especially now. No, it's not.

185
00:07:07.625 --> 00:07:09.685
So clearly there's an issue here. Yep.

186
00:07:10.155 --> 00:07:11.885
With this, what are we doing to,

187
00:07:11.905 --> 00:07:13.245
to solve what we're doing about it?

188
00:07:13.435 --> 00:07:14.925
Well, myself

189
00:07:14.925 --> 00:07:15.965
and colleagues at Royal London,

190
00:07:16.265 --> 00:07:17.885
we really wanted to investigate this.

191
00:07:17.885 --> 00:07:19.205
Mm-Hmm. So we've, um, carried out

192
00:07:19.205 --> 00:07:20.565
some research for a couple of years.

193
00:07:21.185 --> 00:07:23.005
Um, and, you know,

194
00:07:23.005 --> 00:07:24.525
we found some things that weren't a surprise.

195
00:07:24.625 --> 00:07:26.805
So the impact of catering, and we'll talk about that later.

196
00:07:27.185 --> 00:07:29.405
But we also investigated some things

197
00:07:29.405 --> 00:07:31.365
that maybe hadn't been looked at as much before.

198
00:07:31.385 --> 00:07:32.845
And one of those was menopause.

199
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We're going to talk about that a little bit later.

200
00:07:35.505 --> 00:07:39.125
And I think it's, um, it's important to note that, you know,

201
00:07:39.125 --> 00:07:41.965
policy changes by government might be needed, um,

202
00:07:42.105 --> 00:07:44.485
in the kind of longer term, these kind of changes,

203
00:07:44.485 --> 00:07:46.125
they don't really happen overnight.

204
00:07:46.275 --> 00:07:49.005
Yeah. But I think that we can all look at

205
00:07:49.005 --> 00:07:50.125
what we can do right now

206
00:07:50.305 --> 00:07:52.925
or in our own lives to make a difference too.

207
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Yes. Yes. Confidence is one

208
00:07:55.405 --> 00:07:56.765
of the areas that we also looked at.

209
00:07:56.765 --> 00:07:58.005
Okay. Actually confidence. Yeah.

210
00:07:58.005 --> 00:07:59.165
And actually, if there were any differences

211
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between men and women.

212
00:08:00.635 --> 00:08:03.285
Yeah. Now what we found is that women are more likely to,

213
00:08:03.585 --> 00:08:06.965
um, lead management everyday household spending,

214
00:08:07.235 --> 00:08:09.445
childcare costs and holiday spending.

215
00:08:10.145 --> 00:08:12.885
But when it came to longer term financial planning,

216
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so savings and investments, pensions, life criticalness,

217
00:08:17.605 --> 00:08:19.525
and income protection cover, well, actually,

218
00:08:19.685 --> 00:08:21.205
a higher proportion of men said

219
00:08:21.205 --> 00:08:23.565
that they were the main decision maker in the house.

220
00:08:24.125 --> 00:08:26.405
I was suppose this blew my mind, this,

221
00:08:26.525 --> 00:08:27.965
'cause this certainly isn't true in our house,

222
00:08:28.685 --> 00:08:31.005
I can tell you that, but, um, yeah.

223
00:08:31.005 --> 00:08:32.405
It's not true in my house either. Yeah.

224
00:08:32.405 --> 00:08:34.125
But, but you know, that's

225
00:08:34.235 --> 00:08:35.235
Perhaps not normal.

226
00:08:35.315 --> 00:08:37.405
Yeah, exactly. You've asked a lot of people in surveys

227
00:08:37.405 --> 00:08:39.325
and this is data, so Yeah. Wow. Okay.

228
00:08:39.745 --> 00:08:40.925
And what we also found is

229
00:08:40.925 --> 00:08:43.805
that women have a lot less than savings and investments too.

230
00:08:44.585 --> 00:08:47.485
Now there's reasons why a woman who lives

231
00:08:47.485 --> 00:08:49.165
with a male partner might think

232
00:08:49.165 --> 00:08:51.125
that they've got less influence over some topics.

233
00:08:51.395 --> 00:08:53.365
Okay. Some women said that it was

234
00:08:53.365 --> 00:08:55.045
because they felt their partner knew more.

235
00:08:55.585 --> 00:08:58.605
Others just felt that they actually lacked the confidence.

236
00:08:58.715 --> 00:09:00.845
Yeah. And that bears out other research, um,

237
00:09:00.865 --> 00:09:03.405
by the financial services regulator, the FCA,

238
00:09:03.575 --> 00:09:07.925
where they found that 21% of, excuse me, of women, um,

239
00:09:08.345 --> 00:09:12.565
lacked confidence in, um, their own ability

240
00:09:12.625 --> 00:09:16.885
to find financial products or services, um, for themselves.

241
00:09:17.465 --> 00:09:19.485
Now, that was compared to 12% of men.

242
00:09:19.785 --> 00:09:22.885
So this wasn't about that they couldn't make good decisions.

243
00:09:23.195 --> 00:09:25.285
Yeah. It was that they lacked the confidence.

244
00:09:25.285 --> 00:09:26.685
Confidence to be able to, you know,

245
00:09:26.905 --> 00:09:28.325
So can do it just, just didn't

246
00:09:28.325 --> 00:09:29.885
feel confident when it came to it. Yeah. Okay.

247
00:09:29.905 --> 00:09:33.805
That's right. Now, um, if we move on to our first slide.

248
00:09:33.945 --> 00:09:37.045
Yep. You'll see that we, in our research, we also find out

249
00:09:37.075 --> 00:09:39.125
that men are more likely than women

250
00:09:39.305 --> 00:09:41.125
to pay more than the statutory minimum

251
00:09:41.315 --> 00:09:42.405
into their workplace pension.

252
00:09:42.515 --> 00:09:46.165
Okay. Now, on all of these slides, um, the purple arrows are

253
00:09:46.185 --> 00:09:48.565
for women and the tail, um,

254
00:09:48.665 --> 00:09:51.205
or sorry, green, blue arrows are men.

255
00:09:51.625 --> 00:09:54.805
Um, so 50% of women told us that they didn't earn enough

256
00:09:54.805 --> 00:09:57.005
to pay more than that Statutory minimum.

257
00:09:57.545 --> 00:09:59.885
30% of men said the same. Yeah.

258
00:10:00.375 --> 00:10:03.045
Women are also far less confident

259
00:10:03.045 --> 00:10:05.125
that their pension savings will give them enough

260
00:10:05.125 --> 00:10:06.165
income in retirement.

261
00:10:06.225 --> 00:10:09.125
And, you know, we mentioned women live longer than men. Yep.

262
00:10:09.135 --> 00:10:10.685
Thank you for saying that again. But

263
00:10:11.295 --> 00:10:13.605
Women are much more worried about losing their

264
00:10:13.605 --> 00:10:15.005
independence in retirement.

265
00:10:15.225 --> 00:10:18.405
And 44% of women are concerned about not being able

266
00:10:18.405 --> 00:10:21.165
to do the things that they enjoy in retirement compared

267
00:10:21.165 --> 00:10:22.605
to 33% of men.

268
00:10:23.105 --> 00:10:24.845
Um, so if we can take that slide down now.

269
00:10:25.185 --> 00:10:28.885
Um, so I think that shows that women know there is

270
00:10:29.145 --> 00:10:30.485
or there might be a problem.

271
00:10:30.585 --> 00:10:31.805
Mm-Hmm. And remember that other,

272
00:10:31.805 --> 00:10:33.845
that I mentioned from earlier, nearly a third

273
00:10:33.845 --> 00:10:36.325
of women rely only on the state pension.

274
00:10:36.465 --> 00:10:38.525
Mm-Hmm. So I think for many women

275
00:10:38.595 --> 00:10:40.965
that worry is actually justified.

276
00:10:41.785 --> 00:10:43.725
So it, it's a bit gloomy,

277
00:10:43.745 --> 00:10:47.245
but women feel underprepared under prepared for retirement.

278
00:10:47.385 --> 00:10:49.605
And that lack of confidence,

279
00:10:49.605 --> 00:10:51.805
it can also affect asking for help.

280
00:10:51.985 --> 00:10:54.845
So that's a help from a variety of, of different sources.

281
00:10:55.415 --> 00:10:57.845
Women didn't feel comfortable talking about money matters.

282
00:10:58.905 --> 00:11:02.805
So I, I wrote down on my notes here in big confidence.

283
00:11:03.345 --> 00:11:06.725
So obviously there's um, a big, well,

284
00:11:06.725 --> 00:11:07.845
there's an issue here, isn't it?

285
00:11:07.845 --> 00:11:10.045
What we're gonna do, are we gonna do anything to,

286
00:11:10.305 --> 00:11:12.165
to help this, this solve this problem?

287
00:11:12.185 --> 00:11:14.045
It seems like a problem we, we could probably solve.

288
00:11:14.155 --> 00:11:15.685
Yeah. So I think, you know, one

289
00:11:15.685 --> 00:11:17.645
of the first things is just to talk about money,

290
00:11:17.875 --> 00:11:20.085
talk about financial matters at home, at work

291
00:11:20.275 --> 00:11:23.125
with friends at school, you know,

292
00:11:23.195 --> 00:11:24.765
discuss it over a glass of wine.

293
00:11:24.765 --> 00:11:25.885
Yeah. We like that.

294
00:11:26.115 --> 00:11:27.965
Take financial advice if that's appropriate.

295
00:11:28.145 --> 00:11:29.965
But you don't need to be an expert

296
00:11:30.345 --> 00:11:32.045
before you go and see a financial advisor.

297
00:11:32.105 --> 00:11:33.405
And lots of women say to me

298
00:11:33.405 --> 00:11:35.485
that they don't feel they know enough before they go

299
00:11:35.485 --> 00:11:36.605
and see a financial advisor.

300
00:11:37.305 --> 00:11:39.925
But I always say that's a bit like if you're buying a house,

301
00:11:40.145 --> 00:11:41.965
you don't study convincing law

302
00:11:41.985 --> 00:11:43.565
before you go and see a solicitor.

303
00:11:44.205 --> 00:11:47.765
I like that. Yeah, I like that. You don't, but why?

304
00:11:47.905 --> 00:11:51.485
But certainly I don't think it's just, just for,

305
00:11:52.105 --> 00:11:53.285
for women what you're saying here.

306
00:11:53.525 --> 00:11:54.525
I probably feel the same.

307
00:11:54.665 --> 00:11:57.005
You know, when, when, when you go into a financial advisor

308
00:11:57.105 --> 00:11:59.725
for whatever reason, there does feel a difference though.

309
00:12:00.225 --> 00:12:02.845
And there shouldn't be because actually financial advisors

310
00:12:02.845 --> 00:12:04.485
will explain things in a clear

311
00:12:04.485 --> 00:12:06.485
and understandable way that suits you.

312
00:12:06.945 --> 00:12:08.445
And it works, it works for you.

313
00:12:09.265 --> 00:12:12.645
And we've found that women often want a lot more detail

314
00:12:12.645 --> 00:12:14.365
and they want to fully understand

315
00:12:14.555 --> 00:12:15.925
financial decisions they make.

316
00:12:15.925 --> 00:12:18.005
Yeah. And and that is a positive. Yeah, exactly.

317
00:12:18.165 --> 00:12:20.365
'cause Johnny, it, it might be a bit of a surprise,

318
00:12:20.745 --> 00:12:22.645
but actually for the longer term, women

319
00:12:22.705 --> 00:12:25.765
who invest make more money than men. So

320
00:12:25.765 --> 00:12:27.365
Doesn't surprise me. It doesn't surprise you.

321
00:12:27.365 --> 00:12:29.125
That detail can be a really good thing,

322
00:12:29.725 --> 00:12:31.805
fully understanding what you're doing with your money.

323
00:12:31.985 --> 00:12:35.165
And I think kind of looking at myself, my own position

324
00:12:35.165 --> 00:12:38.925
with me, my partner, I would say my partner, she,

325
00:12:39.765 --> 00:12:42.405
I I will just say if it as a phone contract

326
00:12:42.405 --> 00:12:44.205
or something, think of like, yeah, yeah, let's go for it.

327
00:12:44.625 --> 00:12:47.965
But, um, probably my partner would look at the small print.

328
00:12:48.105 --> 00:12:49.365
What's that? Look at how,

329
00:12:49.585 --> 00:12:51.685
how long's a contract, blah, blah, blah, blah.

330
00:12:52.705 --> 00:12:54.285
And I've been caught out there, you know,

331
00:12:54.345 --> 00:12:55.725
so it makes a lot of sense.

332
00:12:55.725 --> 00:12:57.805
You're saying that if you, if you're going to get a pension,

333
00:12:58.385 --> 00:12:59.565
you're gonna Yeah.

334
00:13:00.305 --> 00:13:03.285
So I sense to me, you know, learn to love your pension.

335
00:13:03.285 --> 00:13:05.045
That's really, really important.

336
00:13:05.105 --> 00:13:06.885
Now, obviously, we love our pensions. Yes.

337
00:13:07.265 --> 00:13:10.165
Um, it does sound like a, a little bit of an odd concept,

338
00:13:11.065 --> 00:13:12.565
but actually I think it's important

339
00:13:12.625 --> 00:13:14.685
to take it away from the product of a pension,

340
00:13:15.085 --> 00:13:17.285
actually think about what it means for your life.

341
00:13:17.425 --> 00:13:19.565
So having a good sized pension pot can mean

342
00:13:19.875 --> 00:13:21.805
that you can meet up with friends, you can go out

343
00:13:21.805 --> 00:13:25.765
for dinner in retirement, you can go on mini breaks abroad

344
00:13:25.865 --> 00:13:28.445
or holidays and not be worrying about

345
00:13:28.445 --> 00:13:29.565
paying your energy bill.

346
00:13:29.565 --> 00:13:31.685
Which, you know, sadly, quite a few people do.

347
00:13:31.795 --> 00:13:34.845
Well when you, when you've sort of broke it down like

348
00:13:34.845 --> 00:13:36.765
that, when I think of retirement,

349
00:13:36.885 --> 00:13:39.525
I always think about unobtainable things like going

350
00:13:39.525 --> 00:13:41.285
to The Bahamas or something like that.

351
00:13:41.285 --> 00:13:43.805
But you've, you've just sort of said that going for coffee

352
00:13:43.805 --> 00:13:45.325
with your friends, going for some meals,

353
00:13:45.625 --> 00:13:47.085
all the things in life that you take

354
00:13:47.085 --> 00:13:48.965
for granted at the moment that you probably enjoy

355
00:13:48.985 --> 00:13:51.165
or would like to do, but in retirement.

356
00:13:51.195 --> 00:13:53.205
Yeah. Yeah. I, I get it. I get it.

357
00:13:53.345 --> 00:13:55.165
And that's the thing, think about what brings you joy

358
00:13:55.165 --> 00:13:56.805
today and what you would like to do in your

359
00:13:56.805 --> 00:13:57.805
Retirement. So you kind of, small things

360
00:13:57.805 --> 00:13:58.845
of joy. Yeah, yeah.

361
00:13:58.915 --> 00:14:00.685
Yeah. And I think that is really important.

362
00:14:00.825 --> 00:14:02.885
Now, um, you can get lots

363
00:14:02.885 --> 00:14:04.965
of information about your pension from different sources.

364
00:14:05.225 --> 00:14:07.725
So there's a lot of information on the government backed

365
00:14:07.725 --> 00:14:09.445
and independent money helper website.

366
00:14:09.445 --> 00:14:12.125
Yeah. So that's money helper.org.uk. Yes.

367
00:14:12.345 --> 00:14:14.725
Um, if you're employed, you'll have been automatically

368
00:14:15.005 --> 00:14:16.685
enrolled into a pension Mm-Hmm.

369
00:14:16.765 --> 00:14:17.845
And you'll pay in some money,

370
00:14:17.875 --> 00:14:19.565
your employer will pay some money.

371
00:14:19.565 --> 00:14:21.725
Yeah. Um, your employer will give you

372
00:14:21.725 --> 00:14:22.765
information about your pension.

373
00:14:22.835 --> 00:14:25.405
Your pension company will give you information as well.

374
00:14:26.105 --> 00:14:29.045
Um, I suppose one thing to say though is

375
00:14:29.045 --> 00:14:33.245
that when you're younger, you probably, um, there's a lot

376
00:14:33.305 --> 00:14:35.365
of different things that are calling for a shared

377
00:14:35.365 --> 00:14:36.365
of your hard earned cash.

378
00:14:36.365 --> 00:14:40.045
Mm-Hmm. And some people might think, well, pensions decades

379
00:14:40.265 --> 00:14:41.325
and decades into the future,

380
00:14:41.485 --> 00:14:42.765
I don't need to worry about it now.

381
00:14:43.665 --> 00:14:46.765
And I think it can be quite tempting to put it off Mm-Hmm.

382
00:14:46.785 --> 00:14:49.485
But what I would say is if you pay, you know, start

383
00:14:49.485 --> 00:14:51.845
by paying a little when you're younger, you don't have

384
00:14:51.845 --> 00:14:53.405
to pay a lot more when you're older.

385
00:14:53.825 --> 00:14:55.565
And that's because of something called the magic

386
00:14:55.785 --> 00:14:56.805
of compounding.

387
00:14:56.805 --> 00:14:58.125
Okay. And it just, it's really just the

388
00:14:58.125 --> 00:14:59.205
magic of time, actually.

389
00:14:59.745 --> 00:15:03.085
Um, so, you know, I would say that it's a good idea

390
00:15:03.085 --> 00:15:04.685
to join a pension as soon as you can

391
00:15:04.705 --> 00:15:05.725
and don't opt out

392
00:15:05.785 --> 00:15:08.925
of your pension scheme if you can possibly, um, afford it.

393
00:15:09.305 --> 00:15:11.565
And once you start paying into the pension,

394
00:15:11.995 --> 00:15:13.165
that deduction's made

395
00:15:13.165 --> 00:15:15.085
before you get the money into your bank account,

396
00:15:15.085 --> 00:15:16.605
so you won't really notice it.

397
00:15:16.985 --> 00:15:20.045
Um, and I think following on from that, check your pension.

398
00:15:20.355 --> 00:15:23.565
Okay. Um, that might be on a website. You might have an app.

399
00:15:24.025 --> 00:15:27.445
Um, our workplace pension research found that 45%

400
00:15:27.445 --> 00:15:30.125
of people had checked their pension in the last two years.

401
00:15:30.905 --> 00:15:33.605
Um, but when we look at that in gender terms,

402
00:15:34.445 --> 00:15:36.845
actually nearly half of men had checked their pension in the

403
00:15:36.845 --> 00:15:39.365
last two years, but only four in 10 women.

404
00:15:40.065 --> 00:15:41.565
Oh, wow. So, you know, it might be

405
00:15:41.565 --> 00:15:42.885
because you think it's a long time

406
00:15:42.895 --> 00:15:44.605
until you can access your pension.

407
00:15:44.625 --> 00:15:47.325
Mm-Hmm. But it's worth checking to see

408
00:15:47.555 --> 00:15:49.045
what retirement could look like.

409
00:15:49.745 --> 00:15:52.405
And, you know, I think it's important as well

410
00:15:52.465 --> 00:15:54.405
to look at your pension and think, is there anything

411
00:15:54.595 --> 00:15:55.765
that I would want to change?

412
00:15:56.545 --> 00:15:58.965
So there's something called the default fund.

413
00:15:59.065 --> 00:16:01.165
And if you're in a workplace pension, that's

414
00:16:01.165 --> 00:16:02.965
what you will have been put into when you started.

415
00:16:03.185 --> 00:16:05.245
Now the default fund is suitable

416
00:16:05.305 --> 00:16:07.325
for most people in a workplace pension.

417
00:16:08.105 --> 00:16:09.885
But you can change that if you want.

418
00:16:09.945 --> 00:16:12.125
You can change into maybe a riskier fund.

419
00:16:12.125 --> 00:16:15.325
You can also change into a fund that maybe aligns more

420
00:16:15.325 --> 00:16:16.685
with your principles or beliefs.

421
00:16:17.745 --> 00:16:20.285
And, you know, risk is a, is a tricky concept.

422
00:16:20.485 --> 00:16:22.845
I think we all probably, you know, it's not something

423
00:16:22.845 --> 00:16:24.845
that comes easily to anyone,

424
00:16:24.845 --> 00:16:26.805
especially when we think about investments.

425
00:16:27.745 --> 00:16:30.325
But actually we take risk every day of our lives.

426
00:16:30.425 --> 00:16:31.485
We cross the roads,

427
00:16:31.485 --> 00:16:34.045
or maybe you've kind of like climbing mountains or,

428
00:16:34.065 --> 00:16:35.405
or whatever you do, there's an element

429
00:16:35.425 --> 00:16:36.885
of risk in what we do.

430
00:16:37.465 --> 00:16:40.285
So it's a, it's useful to think about it in terms

431
00:16:40.465 --> 00:16:42.565
of the different kind of savings you might have.

432
00:16:42.705 --> 00:16:45.685
So for your emergency savings that you might need to access

433
00:16:46.345 --> 00:16:49.365
now, they will probably be in an instant access bank

434
00:16:49.365 --> 00:16:52.325
account, and you'll want to take very little risk

435
00:16:52.325 --> 00:16:53.445
with, with those, okay.

436
00:16:53.695 --> 00:16:54.725
Maybe you've got stocks

437
00:16:54.725 --> 00:16:58.365
and shares ISO for, um, saving up for a deposit in a house,

438
00:16:58.385 --> 00:16:59.605
and that's, you know, something you want

439
00:16:59.605 --> 00:17:00.805
to access in a few years

440
00:17:00.985 --> 00:17:04.085
or for your children's university education, which, um,

441
00:17:04.225 --> 00:17:09.165
is coming very rapidly, um, in our household so that you,

442
00:17:09.165 --> 00:17:11.325
you know, you might not want to take as much risk with,

443
00:17:11.355 --> 00:17:12.525
with those kinds of savings

444
00:17:12.525 --> 00:17:14.445
because you want to access them in a few years

445
00:17:15.035 --> 00:17:18.325
because more risk, well, it, it normally, you know,

446
00:17:18.745 --> 00:17:19.965
it can mean more growth,

447
00:17:20.065 --> 00:17:23.365
but also you are, they are more likely to be more volatile.

448
00:17:23.465 --> 00:17:25.805
So you have to know that actually your pension

449
00:17:25.805 --> 00:17:27.005
funds could fall in value.

450
00:17:28.105 --> 00:17:31.445
Now, of course, the hope is that over time the ups

451
00:17:31.445 --> 00:17:32.925
and downs smooth each other out

452
00:17:32.925 --> 00:17:34.725
and there's more ups than downs.

453
00:17:34.725 --> 00:17:36.645
But, you know, there's no guarantee

454
00:17:36.645 --> 00:17:37.925
that this will be the case

455
00:17:37.925 --> 00:17:40.325
because, you know, as with all investments,

456
00:17:40.325 --> 00:17:42.085
you could get back less than you paid in.

457
00:17:42.355 --> 00:17:44.645
Okay. But if you're in your twenties or thirties

458
00:17:45.105 --> 00:17:47.485
and you're not going to be accessing your pension for 30

459
00:17:47.585 --> 00:17:50.925
or 40 years, then taking a little more risk, well,

460
00:17:50.925 --> 00:17:52.165
it could be a good idea.

461
00:17:52.165 --> 00:17:54.045
Mm-Hmm. Um, because it will help you deal

462
00:17:54.045 --> 00:17:55.085
with the ups and downs.

463
00:17:55.745 --> 00:17:58.765
Now, pensions are a long-term investment

464
00:17:58.905 --> 00:18:01.605
and you can't access them until you're 55 currently.

465
00:18:01.605 --> 00:18:04.245
And that's going up to 57 and 2028 mm-Hmm.

466
00:18:04.425 --> 00:18:07.085
Um, but if you are interested in,

467
00:18:07.105 --> 00:18:10.765
in knowing more about risk, then financial advisors, um,

468
00:18:11.035 --> 00:18:13.165
will, you know, can really help to explain

469
00:18:13.385 --> 00:18:14.685
how risk, um, works.

470
00:18:15.305 --> 00:18:18.005
If you don't have a financial advisor, you can find out how

471
00:18:18.005 --> 00:18:19.485
to get one on the money helper site

472
00:18:19.545 --> 00:18:22.045
or also on our Royal London, um, website as well.

473
00:18:22.665 --> 00:18:25.685
And Money Helper's got some great articles on risk too.

474
00:18:25.825 --> 00:18:27.245
So if that's something you're interested,

475
00:18:27.475 --> 00:18:28.525
have a look at, then

476
00:18:29.245 --> 00:18:30.245
Brilliant. Well,

477
00:18:30.245 --> 00:18:31.565
um, some great points

478
00:18:31.745 --> 00:18:34.165
to raise our confidence when it comes to,

479
00:18:34.465 --> 00:18:35.605
to pensions and money.

480
00:18:35.625 --> 00:18:37.405
And I love the, I love pensions.

481
00:18:37.405 --> 00:18:38.685
We, 'cause we love pensions here. We do.

482
00:18:38.785 --> 00:18:40.125
Uh, I got my sticker on this morning.

483
00:18:40.125 --> 00:18:41.285
It must have come, come off.

484
00:18:41.405 --> 00:18:42.925
I, unfortunately, but yeah, we love powerco

485
00:18:42.925 --> 00:18:44.045
the cup, we love pensions here.

486
00:18:44.045 --> 00:18:46.045
But, um, what other things can we do?

487
00:18:46.045 --> 00:18:48.925
What other things can we do to help close this gap?

488
00:18:49.315 --> 00:18:52.005
Well, so it, it will come as no great surprise

489
00:18:52.235 --> 00:18:54.925
that women provide twice as much unpaid, um,

490
00:18:54.995 --> 00:18:56.565
childcare per year than men.

491
00:18:56.665 --> 00:18:59.885
And also healthcare for, um, other people as well.

492
00:18:59.945 --> 00:19:01.845
So that could be elderly relatives,

493
00:19:02.185 --> 00:19:04.565
it could be grandparents caring for grandchildren.

494
00:19:05.185 --> 00:19:07.285
Um, but if we think about parents, first of all,

495
00:19:08.075 --> 00:19:09.405
this, um, caring.

496
00:19:09.555 --> 00:19:11.405
Well, it comes at cost to pay. Yes.

497
00:19:11.705 --> 00:19:12.725
Career opportunities

498
00:19:12.865 --> 00:19:14.725
and development as well as your pension.

499
00:19:14.865 --> 00:19:16.365
So if we look at our first, uh,

500
00:19:16.465 --> 00:19:18.005
our next slide here, please, James.

501
00:19:18.665 --> 00:19:22.885
Um, we asked about the need for one parent

502
00:19:22.945 --> 00:19:25.965
to work part-time if their children to care for, okay.

503
00:19:26.105 --> 00:19:27.885
And for almost two thirds of women

504
00:19:27.945 --> 00:19:30.125
and two fifths of men, they agreed with

505
00:19:30.125 --> 00:19:32.365
that actually there was a need to work part-time.

506
00:19:33.175 --> 00:19:37.125
62% of women and 41% of men have either left

507
00:19:37.305 --> 00:19:38.805
or considered leaving work

508
00:19:39.035 --> 00:19:41.005
because of childcare responsibilities.

509
00:19:41.505 --> 00:19:42.925
So it's a huge percentage, isn't

510
00:19:42.925 --> 00:19:43.925
It? It is very, very

511
00:19:43.925 --> 00:19:46.205
much so just becoming parents.

512
00:19:46.465 --> 00:19:49.445
Me, my partner myself. You can, you can relate to that.

513
00:19:49.705 --> 00:19:51.005
You can I can relate to that.

514
00:19:51.065 --> 00:19:52.885
It it, it's not easy, is it? No, no.

515
00:19:53.145 --> 00:19:56.565
And what people find is that childcare costs are, you know,

516
00:19:56.565 --> 00:19:58.125
it's a huge problem.

517
00:19:58.265 --> 00:20:00.565
It can often feel like it's the equivalent of one salary

518
00:20:00.875 --> 00:20:01.875
Easy. Yeah. Depending

519
00:20:01.875 --> 00:20:03.885
where you live in the country. Yeah. Yeah.

520
00:20:04.275 --> 00:20:06.565
Totally. Um, now in England

521
00:20:06.565 --> 00:20:07.965
and Wales from the 1st of September,

522
00:20:07.965 --> 00:20:09.565
there was an increase in the amount of, um,

523
00:20:09.565 --> 00:20:10.765
childcare hours available.

524
00:20:10.865 --> 00:20:12.845
So hopefully that should make a difference. Mm-Hmm.

525
00:20:13.185 --> 00:20:16.165
But if people feel that their only option is to leave work

526
00:20:16.165 --> 00:20:17.685
because of the costs of childcare.

527
00:20:17.685 --> 00:20:19.245
Yeah. So you're dealing with a current problem,

528
00:20:20.825 --> 00:20:22.645
it will cause problems later in life.

529
00:20:22.665 --> 00:20:25.125
So that's from a financial resilience point of view. Mm-Hmm.

530
00:20:25.265 --> 00:20:27.405
Um, and from a pension's point of view Okay.

531
00:20:27.425 --> 00:20:30.125
And our financial resilience research found out that those

532
00:20:30.125 --> 00:20:33.045
with children and pets have been among the worst affected

533
00:20:33.065 --> 00:20:34.605
by the cost of living crisis.

534
00:20:35.065 --> 00:20:36.405
That's crazy. Yeah. Yeah.

535
00:20:36.425 --> 00:20:41.365
And if we move on to the next slide, we can also see that,

536
00:20:41.365 --> 00:20:43.605
that it causes other issues when you have children.

537
00:20:43.605 --> 00:20:45.365
Okay. So over half of, um, women

538
00:20:45.505 --> 00:20:47.085
and 44% of men

539
00:20:47.715 --> 00:20:50.405
said having children made doing their job harder,

540
00:20:51.225 --> 00:20:53.565
and nearly half of women are more than a third of men.

541
00:20:53.595 --> 00:20:54.805
Well, they feel that it should just

542
00:20:54.805 --> 00:20:56.005
their workplace confidence.

543
00:20:56.115 --> 00:20:58.085
Yeah. And I think this is really common.

544
00:20:58.225 --> 00:21:01.045
You know, it's not easy working and caring for

545
00:21:01.045 --> 00:21:05.445
Family as, as a new parent, I can say it is harder on

546
00:21:06.225 --> 00:21:08.565
the mom and it is the dad I think.

547
00:21:08.565 --> 00:21:11.565
So there's certain things the dads can't do than the mom's.

548
00:21:11.725 --> 00:21:13.045
I I do, I do believe that,

549
00:21:13.275 --> 00:21:15.645
that it's still a, a hard job for both. Both,

550
00:21:16.545 --> 00:21:17.545
Yes. And I think, you

551
00:21:17.545 --> 00:21:19.565
know, I think there's often a bit more

552
00:21:19.565 --> 00:21:20.725
guilt for mothers.

553
00:21:20.725 --> 00:21:22.725
Definitely. Yeah. Whatever they do. Whether you're a stay at

554
00:21:22.725 --> 00:21:25.405
home mom, whether you work whatever you do, it feels that

555
00:21:26.085 --> 00:21:27.925
actually that's, that's something you probably

556
00:21:27.925 --> 00:21:29.845
didn't anticipate before. You had a baby

557
00:21:30.025 --> 00:21:33.485
De definitely, definitely get guilt on, um, relying on

558
00:21:34.285 --> 00:21:37.525
grandparents help all that. Yeah. Guilt, yeah.

559
00:21:38.225 --> 00:21:39.125
Be part of it. If we can take

560
00:21:39.125 --> 00:21:40.165
the slide down now, that'd be great.

561
00:21:40.165 --> 00:21:43.445
Thank you. So now actually in the uk,

562
00:21:43.505 --> 00:21:45.685
and this just happened in the last couple of years,

563
00:21:45.705 --> 00:21:48.565
the most common arrangement for working parents is

564
00:21:48.565 --> 00:21:50.125
for both parents to work full time.

565
00:21:50.425 --> 00:21:52.725
Yes. Um, and that's probably a sign of the times. Yeah.

566
00:21:52.725 --> 00:21:55.965
Having to, you know, increase mortgage costs. Yeah.

567
00:21:55.965 --> 00:21:57.005
You know, kinda needing that money.

568
00:21:57.585 --> 00:21:59.565
But what we found is

569
00:21:59.565 --> 00:22:01.605
that women do still make up the

570
00:22:01.725 --> 00:22:02.845
majority of part-time workers.

571
00:22:03.345 --> 00:22:05.365
And in heterosexual couples with children

572
00:22:05.735 --> 00:22:09.645
where one person works part-time, it's much more common that

573
00:22:09.645 --> 00:22:11.445
that will be a woman than a man.

574
00:22:11.555 --> 00:22:14.965
Okay. And even where both people earn the same amount

575
00:22:14.965 --> 00:22:16.645
of money, it was more likely

576
00:22:16.715 --> 00:22:19.565
that the women would reduce their hours or stop work.

577
00:22:20.145 --> 00:22:22.685
Wow. So, um, I guess,

578
00:22:23.935 --> 00:22:26.725
guess a quick solution to, to fixing this problem.

579
00:22:27.505 --> 00:22:29.965
No, I think probably as a society we need to look at

580
00:22:30.505 --> 00:22:31.965
why more women work part-time.

581
00:22:31.965 --> 00:22:33.805
Mm-Hmm. It's not the same in, in all countries.

582
00:22:33.945 --> 00:22:36.205
So why is it kind of here that that is the case?

583
00:22:36.465 --> 00:22:37.965
Oh, so it's not the same in all

584
00:22:38.045 --> 00:22:39.045
Country? No. So I think

585
00:22:39.045 --> 00:22:40.205
in some countries Wow.

586
00:22:40.225 --> 00:22:42.565
So in Sweden for example, that, um,

587
00:22:42.725 --> 00:22:44.765
a lot more women would work full time.

588
00:22:44.955 --> 00:22:47.245
Okay. So, you know, it kind of, there's other reasons for

589
00:22:47.245 --> 00:22:49.285
that in the background as well, you know.

590
00:22:49.625 --> 00:22:51.245
Um, but I think there are some things

591
00:22:51.245 --> 00:22:54.085
that we can do individually as couples as well.

592
00:22:54.185 --> 00:22:56.885
And again, kind of talking about it, so I mentioned

593
00:22:56.965 --> 00:22:59.445
that I've got three children who are all older now the days

594
00:22:59.445 --> 00:23:00.485
of childcare are passed.

595
00:23:01.225 --> 00:23:06.085
Um, but when we were expecting our first baby, we knew

596
00:23:06.085 --> 00:23:07.485
that we both needed to work.

597
00:23:07.905 --> 00:23:10.885
So we sat down and had a conversation about how, how would

598
00:23:10.885 --> 00:23:11.965
that actually work in practice.

599
00:23:11.985 --> 00:23:14.405
Now my husband's a police officer, um,

600
00:23:14.465 --> 00:23:16.685
and until a few years ago he worked shifts.

601
00:23:17.185 --> 00:23:20.605
Um, but we worked out a system where with his days off

602
00:23:20.605 --> 00:23:24.325
during the week and, and me working full time over four days

603
00:23:24.425 --> 00:23:26.445
for a long time, we could kind

604
00:23:26.445 --> 00:23:28.285
of share the childcare equally

605
00:23:28.465 --> 00:23:30.205
and not need as much paid childcare.

606
00:23:31.025 --> 00:23:32.365
It meant we didn't have many

607
00:23:32.365 --> 00:23:34.165
weekends altogether as a family.

608
00:23:34.785 --> 00:23:38.565
Um, but um, it did mean that he by himself got

609
00:23:38.565 --> 00:23:40.325
to spend a lot of time with our children.

610
00:23:41.085 --> 00:23:42.845
I don't think he always thought that was a great idea,

611
00:23:43.125 --> 00:23:45.005
but now kind of our children can look back

612
00:23:45.045 --> 00:23:47.085
and say they really enjoyed that time as well.

613
00:23:47.945 --> 00:23:51.045
So I think having good conversations is really important.

614
00:23:51.075 --> 00:23:54.885
Yeah. Talking about this now what I'm not saying is

615
00:23:54.885 --> 00:23:56.565
that women shouldn't work part-time

616
00:23:56.625 --> 00:23:58.205
or women shouldn't stop work.

617
00:24:00.165 --> 00:24:01.485
I spoke about the fact that lots

618
00:24:01.485 --> 00:24:03.925
of my friends ask me about it now.

619
00:24:03.985 --> 00:24:05.805
And what they always see is

620
00:24:05.805 --> 00:24:07.685
that they wish they'd known more at the time

621
00:24:07.875 --> 00:24:09.605
what the implications were for the future.

622
00:24:09.905 --> 00:24:12.285
Not that they would've made a different decision, just

623
00:24:12.285 --> 00:24:14.245
that it might have helped at that point in time.

624
00:24:14.385 --> 00:24:17.805
So, um, so it's very much about kind of thinking about it,

625
00:24:17.875 --> 00:24:19.565
talking about it, and knowing more.

626
00:24:19.635 --> 00:24:21.845
Yeah. Yeah. And I think when people reduce their errors,

627
00:24:22.315 --> 00:24:25.565
they often forget that workplace pensions are worked out

628
00:24:25.705 --> 00:24:27.045
by percentage of salary.

629
00:24:27.105 --> 00:24:28.565
Yes. So your salary goes down

630
00:24:28.565 --> 00:24:30.205
and your pension contributions go down.

631
00:24:31.625 --> 00:24:34.125
And actually you can ask your employer, they might be able

632
00:24:34.125 --> 00:24:36.005
to point you in the direction of a calculator,

633
00:24:36.005 --> 00:24:38.245
which will show you the impact that will have,

634
00:24:38.625 --> 00:24:39.685
um, for your future.

635
00:24:39.995 --> 00:24:43.365
Okay. And that actually might help you to realize

636
00:24:43.365 --> 00:24:45.845
that it's going to have a bigger impact than you expected.

637
00:24:46.265 --> 00:24:50.045
Mm. So I think back to learning to love your pension.

638
00:24:50.625 --> 00:24:52.965
Now if you can, it's a really good idea

639
00:24:53.065 --> 00:24:55.645
to pay more into your pension before you have children.

640
00:24:55.795 --> 00:24:57.965
Okay. Now, you might not have given it much thought at

641
00:24:57.965 --> 00:24:59.845
that kind of stage in your career Mm-Hmm.

642
00:25:00.465 --> 00:25:02.805
But actually it could help the size

643
00:25:02.805 --> 00:25:04.925
of your pension pot if you do decide later

644
00:25:04.945 --> 00:25:06.725
to reduce your hours or stop working

645
00:25:07.625 --> 00:25:09.405
and things like increasing your pension

646
00:25:09.765 --> 00:25:10.965
contributions when you get a paid rise.

647
00:25:10.965 --> 00:25:12.165
Well that can be a really good idea

648
00:25:12.165 --> 00:25:14.125
because you don't miss what, what you've never had.

649
00:25:14.125 --> 00:25:15.325
Exactly. Great tip.

650
00:25:15.585 --> 00:25:18.845
Now, Johnny, as you'll know, once children are born, well,

651
00:25:18.845 --> 00:25:20.725
there's a lot of extra expenditure.

652
00:25:20.825 --> 00:25:25.205
Yep. Find out. But so if you're do hours do due,

653
00:25:25.205 --> 00:25:28.805
so is it still possible to pay extra into your pension?

654
00:25:29.145 --> 00:25:31.445
Yes. Um, and maybe the same amount as

655
00:25:31.445 --> 00:25:32.885
before, maybe that's not achievable,

656
00:25:32.905 --> 00:25:35.365
but even a little bit extra could help.

657
00:25:36.025 --> 00:25:38.885
Now this is especially true if the person who's reducing

658
00:25:38.975 --> 00:25:41.605
their pension or reducing their hours, um,

659
00:25:41.665 --> 00:25:43.205
has a really valuable pension.

660
00:25:43.275 --> 00:25:46.565
Okay. So again, it's about thinking about it as a couple,

661
00:25:46.945 --> 00:25:48.245
um, talking about it.

662
00:25:48.305 --> 00:25:51.365
Mm-Hmm. If one person is still full-time, could they afford

663
00:25:51.365 --> 00:25:53.485
to pay more into their partner's pension?

664
00:25:53.485 --> 00:25:54.805
Yeah. That also might help.

665
00:25:54.945 --> 00:25:57.005
And you know, again, it'll depend on a variety

666
00:25:57.025 --> 00:25:59.525
of different factors, whether you can afford it, the type

667
00:25:59.525 --> 00:26:00.725
of pension schemes and things.

668
00:26:01.225 --> 00:26:03.525
But that could be a really good idea. Mm.

669
00:26:03.945 --> 00:26:06.885
And I think one reminder, um, is

670
00:26:06.885 --> 00:26:08.445
that everyone can have a pension.

671
00:26:08.545 --> 00:26:12.045
So even if you stop work, you can still have a pension.

672
00:26:12.265 --> 00:26:15.965
You can pay 2,880 pounds a year into a pension. Mm-Hmm.

673
00:26:16.065 --> 00:26:17.925
The government topped that up with tax relief,

674
00:26:17.925 --> 00:26:20.045
which means there's 3,600 pounds

675
00:26:20.045 --> 00:26:22.165
that goes into, um, your pension.

676
00:26:22.545 --> 00:26:24.405
So your pension saving doesn't have

677
00:26:24.405 --> 00:26:25.725
to stop at that point in time.

678
00:26:26.585 --> 00:26:29.605
And I think linked to all of that, again,

679
00:26:29.605 --> 00:26:34.085
kinda about those conversations, if you both earn the same

680
00:26:34.465 --> 00:26:36.685
and you're thinking about one person reducing their hours,

681
00:26:37.385 --> 00:26:40.285
but again, not every pension is as generous as the other.

682
00:26:40.425 --> 00:26:42.725
So investigate and don't just look at kind of pay,

683
00:26:42.755 --> 00:26:45.805
look at pension, look at other benefits, um,

684
00:26:46.035 --> 00:26:47.685
because it's come becoming more

685
00:26:47.685 --> 00:26:50.725
and more common for couples to both reduce their hours

686
00:26:50.865 --> 00:26:52.205
or both work compressed hours.

687
00:26:52.225 --> 00:26:56.485
Mm-Hmm. And I think we've seen the working, um,

688
00:26:56.555 --> 00:26:59.205
environment really change post pandemic Mm-Hmm.

689
00:26:59.285 --> 00:27:00.805
Um, more flexible working in things

690
00:27:00.825 --> 00:27:02.565
and hopefully that means more opportunities

691
00:27:02.705 --> 00:27:04.645
and potential earnings, um,

692
00:27:04.785 --> 00:27:08.045
and potential increases in in retirement income for women.

693
00:27:09.385 --> 00:27:14.205
So we spoke about parents looking after the children.

694
00:27:14.675 --> 00:27:16.565
It's not just parents as who, who are looking

695
00:27:16.565 --> 00:27:19.165
after our children when we're at

696
00:27:19.165 --> 00:27:20.165
Work. No, there's

697
00:27:20.165 --> 00:27:21.125
a lot of grandparents

698
00:27:21.225 --> 00:27:22.725
or other family members caring

699
00:27:22.945 --> 00:27:24.365
for children when people are at work.

700
00:27:24.365 --> 00:27:27.485
Yeah. And these, you know, people also might be caring

701
00:27:27.625 --> 00:27:29.165
for elderly relatives.

702
00:27:29.165 --> 00:27:33.325
Okay. Um, so, you know, kind of a bit

703
00:27:33.325 --> 00:27:35.845
of the same story here, Johnny, that actually women are

704
00:27:35.845 --> 00:27:39.405
three times more likely to retire early to care

705
00:27:39.405 --> 00:27:40.965
for other family members than men.

706
00:27:41.225 --> 00:27:44.765
Mm-Hmm. So normally when you're in your fifties

707
00:27:44.825 --> 00:27:47.365
or sixties, you'll be getting to that point in your career

708
00:27:47.475 --> 00:27:48.805
that you might have reached your kind

709
00:27:48.805 --> 00:27:49.965
of peak earning potential.

710
00:27:49.965 --> 00:27:50.765
Yeah. And that means maybe

711
00:27:50.915 --> 00:27:52.725
pension contributions are at their highest.

712
00:27:53.175 --> 00:27:54.805
Maybe you've finished paying off your mortgage

713
00:27:54.955 --> 00:27:56.445
like one day joining. Like

714
00:27:56.845 --> 00:27:57.845
I can't Wait.

715
00:27:57.905 --> 00:28:00.405
Um, and so you've got a bit more capacity to save,

716
00:28:01.425 --> 00:28:03.725
but that's not going to happen if you reduce your hours

717
00:28:04.225 --> 00:28:06.285
or you stop working to care for family members.

718
00:28:06.865 --> 00:28:10.805
Um, and Johnny kind of, you benefit from grandparent health?

719
00:28:10.915 --> 00:28:15.365
Very, very much so, um, seven 30 this morning, both me

720
00:28:15.385 --> 00:28:18.005
and, uh, my partner, we were leaving, passing the baby

721
00:28:18.105 --> 00:28:20.085
to grandparents and uh, yeah.

722
00:28:20.085 --> 00:28:22.605
They, they were coming and looking after the baby. So Yeah.

723
00:28:22.605 --> 00:28:23.845
It's, it's hard. It's hard.

724
00:28:24.145 --> 00:28:27.365
But, um, yeah, we, we get get support from our, our parents

725
00:28:27.985 --> 00:28:29.285
and feel very guilty for it. Yeah.

726
00:28:29.465 --> 00:28:31.445
But they probably love it. Do they do? Yeah.

727
00:28:31.445 --> 00:28:32.925
They say they do and, and you go home

728
00:28:32.925 --> 00:28:34.365
and they're exhausted, but they say they do.

729
00:28:34.365 --> 00:28:35.965
Yeah. And I think that's the thing, looking

730
00:28:35.965 --> 00:28:38.565
after grandchildren can bring a huge amount of joy.

731
00:28:39.025 --> 00:28:40.965
Um, and again, we're looking at some of the issues

732
00:28:41.065 --> 00:28:42.245
and talking about some ideas,

733
00:28:42.425 --> 00:28:44.565
but we're not saying not to do this.

734
00:28:45.705 --> 00:28:47.885
Um, you know, it's kind of similar to

735
00:28:47.885 --> 00:28:50.285
what we were talking about in relation to pen to parents.

736
00:28:50.675 --> 00:28:53.285
It's all about having these conversations and Yeah.

737
00:28:53.425 --> 00:28:56.525
And actually can share, can care be shared.

738
00:28:56.665 --> 00:28:59.485
So, um, instead of just a grandmother stopping work,

739
00:28:59.735 --> 00:29:02.125
could both grandparents help out in that way?

740
00:29:02.185 --> 00:29:06.685
Mm-Hmm. And, you know, have you investigated actually

741
00:29:06.685 --> 00:29:08.165
what your retirement's going to look like?

742
00:29:08.165 --> 00:29:11.205
Because actually thinking about what you're, you know,

743
00:29:11.285 --> 00:29:12.565
the amount you're going to need in

744
00:29:12.565 --> 00:29:13.765
retirement is really important.

745
00:29:13.905 --> 00:29:16.365
So if you haven't then have a look at the

746
00:29:16.365 --> 00:29:17.525
retirement living standards.

747
00:29:17.625 --> 00:29:18.925
Um, yeah, we'll do that.

748
00:29:19.165 --> 00:29:20.525
'cause you know, we'll we do, we,

749
00:29:20.545 --> 00:29:21.805
we talk about that quite a lot.

750
00:29:22.345 --> 00:29:25.365
Now these are standards, this is kind of, it's a website.

751
00:29:25.705 --> 00:29:28.125
Um, it was independent researchers Yeah.

752
00:29:28.125 --> 00:29:30.205
Have looked at this. They tell you

753
00:29:30.265 --> 00:29:33.005
how much you'll need depending on the type of retirement

754
00:29:33.005 --> 00:29:34.645
that you would like, um,

755
00:29:34.745 --> 00:29:37.165
and kind of the kind of lifestyle that you would like.

756
00:29:37.265 --> 00:29:40.645
So it, it is really useful explains, and I'm really clear

757
00:29:40.665 --> 00:29:42.365
and easy to understand way.

758
00:29:42.825 --> 00:29:44.925
So, so maybe you're a grandparent,

759
00:29:45.105 --> 00:29:47.405
you might have been thinking about giving up work Mm-Hmm.

760
00:29:47.485 --> 00:29:49.765
Um, to help care for the grandchildren that you adore.

761
00:29:49.765 --> 00:29:51.205
Mm-Hmm. But you crunch the numbers

762
00:29:51.265 --> 00:29:54.405
and you think actually I'm, you know, I can't quite afford

763
00:29:54.405 --> 00:29:57.285
to do that, but what I can do is reduce my hours a little

764
00:29:57.545 --> 00:29:59.645
and help out with childcare that way.

765
00:29:59.645 --> 00:30:02.205
Mm-Hmm. So that's definitely something that could be done.

766
00:30:03.505 --> 00:30:06.125
But it's not just about thinking about private pensions.

767
00:30:06.395 --> 00:30:09.325
It's really important to think about the state pension too.

768
00:30:09.585 --> 00:30:12.845
Now you need 35 years of national insurance credits

769
00:30:12.845 --> 00:30:16.605
or contributions to get the full, um, state pension.

770
00:30:17.265 --> 00:30:21.085
So again, you know, one of the most important things

771
00:30:21.085 --> 00:30:23.245
to do is to get a state pension forecast

772
00:30:23.265 --> 00:30:24.525
to work out if you're going

773
00:30:24.525 --> 00:30:26.565
to be getting the full new state pension.

774
00:30:27.265 --> 00:30:29.965
Um, now you go into gov.uk

775
00:30:30.225 --> 00:30:33.045
and you can look at your contribution record.

776
00:30:33.215 --> 00:30:35.845
We've got a guide, um, on royal london.com

777
00:30:35.845 --> 00:30:37.605
because state pension is something that, you know,

778
00:30:37.785 --> 00:30:39.205
is really important to everyone.

779
00:30:39.345 --> 00:30:42.125
Yes. So getting that forecast means that you'll have an idea

780
00:30:42.185 --> 00:30:44.525
of what state pension you'll have in retirement

781
00:30:45.545 --> 00:30:48.125
if you are stopping work to care for grandchildren, though,

782
00:30:48.815 --> 00:30:51.245
there is something you can do about it if you don't have

783
00:30:51.245 --> 00:30:53.965
enough years of national insurance contributions or credits.

784
00:30:54.075 --> 00:30:55.125
Yeah. And that's

785
00:30:55.365 --> 00:30:56.485
because you can apply

786
00:30:56.485 --> 00:30:59.965
for something called specified adult childcare credits.

787
00:30:59.965 --> 00:31:01.005
Now it's a bit of a mouthful.

788
00:31:01.345 --> 00:31:03.285
And essentially it just means that you're going

789
00:31:03.285 --> 00:31:05.965
to get some national insurance credits for caring

790
00:31:05.985 --> 00:31:08.325
for your grandchildren, um, in the same way

791
00:31:08.325 --> 00:31:10.765
that a parent who'd stopped working could get national

792
00:31:10.765 --> 00:31:12.405
insurance credits as well.

793
00:31:12.555 --> 00:31:15.085
Okay. So that can really help someone who's in their

794
00:31:15.085 --> 00:31:18.125
fifties, sixties before they reach state pension age Yeah.

795
00:31:18.185 --> 00:31:20.885
To get some extra years of national insurance contributions

796
00:31:20.905 --> 00:31:23.045
and help them get that full state pension.

797
00:31:23.605 --> 00:31:25.005
I think that's really interesting.

798
00:31:25.025 --> 00:31:26.525
And a lot of people dunno about that.

799
00:31:27.315 --> 00:31:28.525
It's not applied for enough.

800
00:31:28.525 --> 00:31:31.005
So it's really important, you know, if that, if that is you

801
00:31:31.065 --> 00:31:34.045
or if it is your family member, then it's worth mentioning.

802
00:31:34.285 --> 00:31:36.725
I often mention it to friends who are think, you know,

803
00:31:36.725 --> 00:31:38.485
thinking about it's either their parents

804
00:31:38.705 --> 00:31:39.845
or it's maybe them

805
00:31:39.845 --> 00:31:41.605
that are thinking about stopping work to care

806
00:31:41.605 --> 00:31:42.685
for grandchildren. I

807
00:31:42.685 --> 00:31:43.685
Love that. Okay. So

808
00:31:43.685 --> 00:31:45.485
we've spoke about confidence,

809
00:31:45.485 --> 00:31:47.485
we've spoke about care and responsibilities.

810
00:31:48.265 --> 00:31:51.765
Um, what other things significantly,

811
00:31:52.195 --> 00:31:54.085
significantly impact women?

812
00:31:54.595 --> 00:31:56.725
Well, I think some of the areas I've spoken about could

813
00:31:56.725 --> 00:31:58.045
impact men just as much.

814
00:31:58.045 --> 00:31:59.765
Okay. Because men could reduce their hours,

815
00:31:59.795 --> 00:32:01.085
they could stop work to care.

816
00:32:01.105 --> 00:32:03.845
Yes. Yes. Um, but the last area that I want

817
00:32:03.845 --> 00:32:05.365
to talk about is really specific to women

818
00:32:05.385 --> 00:32:06.485
and that's the menopause.

819
00:32:06.555 --> 00:32:09.325
Yeah. Now this is something that my colleagues, Sarah

820
00:32:09.365 --> 00:32:11.005
and I were really determined was included.

821
00:32:11.155 --> 00:32:12.445
It's not something that's been picked

822
00:32:12.445 --> 00:32:13.565
up on a lot in the past.

823
00:32:13.785 --> 00:32:16.125
Yes. Um, it's something I'm rapidly approaching

824
00:32:16.125 --> 00:32:17.605
and it feels like it's the main topic

825
00:32:17.605 --> 00:32:19.245
of conversation amongst my friends.

826
00:32:20.085 --> 00:32:23.605
Um, not every woman is going to be a caterer to children,

827
00:32:23.635 --> 00:32:26.125
grandchildren, elderly relatives,

828
00:32:26.125 --> 00:32:28.925
but nearly every woman is going to go through the menopause.

829
00:32:30.225 --> 00:32:32.205
And interestingly, women over 50

830
00:32:32.725 --> 00:32:35.405
represent the fastest growing segment of the workforce.

831
00:32:35.985 --> 00:32:37.885
And if we look at the next slide Mm-Hmm.

832
00:32:37.965 --> 00:32:39.205
We can see what the, um,

833
00:32:39.205 --> 00:32:42.325
government menopause champion said last year on

834
00:32:42.355 --> 00:32:43.645
menopause awareness day.

835
00:32:44.425 --> 00:32:46.885
Um, and you know, she was talking about the fact

836
00:32:46.885 --> 00:32:50.165
that post menopause should be a time to thrive and grow

837
00:32:50.185 --> 00:32:52.085
and it should give the best years of your career.

838
00:32:52.555 --> 00:32:53.605
Okay. But Johnny,

839
00:32:54.005 --> 00:32:57.765
actually almost 1 million women have left the workforce due

840
00:32:57.765 --> 00:32:58.885
to menopausal symptoms.

841
00:32:59.025 --> 00:33:00.245
So, so why is that? That

842
00:33:00.245 --> 00:33:01.245
That's massive. Massive.

843
00:33:01.245 --> 00:33:03.645
Yeah. And I think if we go into the next slide,

844
00:33:04.065 --> 00:33:07.005
we can, um, get an idea of why that might be happening.

845
00:33:07.075 --> 00:33:09.885
Okay. So our research, um, asked about the symptoms

846
00:33:10.035 --> 00:33:12.725
that have impacted women going through the menopause.

847
00:33:12.725 --> 00:33:15.205
And as you can see this is, you know, this isn't all

848
00:33:15.205 --> 00:33:16.805
of the symptoms, this is some of the symptoms.

849
00:33:16.985 --> 00:33:18.685
But if you look at the percentages, you know,

850
00:33:18.685 --> 00:33:21.925
we've got some reaching kind of almost 80%, you know.

851
00:33:21.925 --> 00:33:24.125
Yeah. Most over 60%.

852
00:33:25.425 --> 00:33:27.885
So, and yeah, looking at this, this chart

853
00:33:28.505 --> 00:33:29.725
and looking at how,

854
00:33:30.145 --> 00:33:31.925
how do you do your job when you've got high levels

855
00:33:32.025 --> 00:33:34.885
of anxiety, you know, um,

856
00:33:35.505 --> 00:33:38.765
on note it said the brain fog, you know, all them Well,

857
00:33:39.565 --> 00:33:41.565
I said to you, I think I'm going through the menopause early

858
00:33:41.565 --> 00:33:42.805
because I've got quite a lot of them.

859
00:33:43.185 --> 00:33:44.285
But, um, yeah.

860
00:33:45.385 --> 00:33:48.205
It and unaware of them as well when, when you put them.

861
00:33:48.285 --> 00:33:49.765
I didn't, I didn't know that. Yeah, I didn't know

862
00:33:49.765 --> 00:33:50.765
That. And I, I don't

863
00:33:50.765 --> 00:33:51.845
think it's a great surprise

864
00:33:52.035 --> 00:33:55.165
that chronic symptoms can mean that women might not be able

865
00:33:55.165 --> 00:33:57.765
to play an active role in the workforce when their earnings

866
00:33:57.905 --> 00:34:00.085
and, um, you know, with their retirement savings,

867
00:34:00.275 --> 00:34:02.965
we'd normally, as we've mentioned, have been at a peak, um,

868
00:34:02.965 --> 00:34:04.045
because people tend

869
00:34:04.045 --> 00:34:06.005
to save more the closer they get to retirement.

870
00:34:06.005 --> 00:34:09.805
Yeah. Yeah. Um, I think I was really surprised by the effect

871
00:34:09.805 --> 00:34:12.525
that the perimenopause and the menopause can have on women.

872
00:34:12.825 --> 00:34:16.165
Yes. Um, and if we look in the next slide, um,

873
00:34:16.345 --> 00:34:21.325
we found in our, um, research that 83% of women impacted

874
00:34:21.385 --> 00:34:24.245
by the menopause said it reduced their workplace confidence.

875
00:34:24.545 --> 00:34:27.605
Wow. 86% said it made it harder to do their job

876
00:34:28.225 --> 00:34:31.125
and 50% said they were considering leaving the workforce.

877
00:34:31.225 --> 00:34:33.205
So there's really high numbers. Mm-Hmm.

878
00:34:33.395 --> 00:34:35.725
It's not just a few people, it's, you know, the majority

879
00:34:36.615 --> 00:34:38.045
50% leaving the workforce.

880
00:34:38.275 --> 00:34:40.685
That could have a significant impact, obviously on, on,

881
00:34:40.905 --> 00:34:43.085
on the workplace as well, couldn't it? Indeed.

882
00:34:43.185 --> 00:34:44.325
You know, and it's really tough.

883
00:34:44.325 --> 00:34:46.405
There's an employer, there's a bit of good news here. Okay.

884
00:34:46.425 --> 00:34:50.005
Um, Johnny, the good news is that 41% of women said

885
00:34:50.075 --> 00:34:52.165
that their employer had created a culture

886
00:34:52.345 --> 00:34:53.925
for talking about the menopause was

887
00:34:53.985 --> 00:34:55.205
no longer a taboo subject.

888
00:34:55.235 --> 00:34:58.845
Yeah, yeah. But that actually means that 59% of women said

889
00:34:58.845 --> 00:35:01.125
that it still was a taboo subject in the workforce.

890
00:35:01.395 --> 00:35:04.365
Yeah. So that's quite interesting, isn't it? Yeah.

891
00:35:04.705 --> 00:35:06.125
And, and I can get that. I mean, when,

892
00:35:06.155 --> 00:35:08.325
when you said we were gonna talk about the menopause today,

893
00:35:08.405 --> 00:35:10.965
I, I, I was thinking as a male, you know,

894
00:35:10.965 --> 00:35:13.685
I dunno much about it and it, it does feel a taboo subject.

895
00:35:13.705 --> 00:35:15.045
But when we started speaking about it,

896
00:35:15.045 --> 00:35:19.065
and I said to you earlier that over the last couple

897
00:35:19.065 --> 00:35:20.985
of years I've heard on b BBC Radio two,

898
00:35:20.985 --> 00:35:23.505
there's been a show about it that seems to be,

899
00:35:23.655 --> 00:35:25.225
everybody's talking about it now,

900
00:35:25.225 --> 00:35:27.065
whether it's male or female.

901
00:35:27.165 --> 00:35:28.985
So I think it's, which is great. It's great. Exactly.

902
00:35:29.175 --> 00:35:30.905
It's really good deal. I agree. I agree.

903
00:35:31.245 --> 00:35:34.145
For so many years, hundreds of years. Yes.

904
00:35:34.145 --> 00:35:35.785
You know, women haven't spoken about this. Yeah.

905
00:35:35.785 --> 00:35:38.765
So speaking about it, again, it's, it's crucial. Mm-Hmm.

906
00:35:38.985 --> 00:35:40.645
Um, now we asked women

907
00:35:40.905 --> 00:35:42.965
and men what they thought would help deal

908
00:35:42.965 --> 00:35:44.365
with these symptoms in the workplace.

909
00:35:44.395 --> 00:35:46.685
Yeah. And actually there was no gender divide about

910
00:35:46.685 --> 00:35:47.845
what they thought the top thing was.

911
00:35:48.065 --> 00:35:49.245
And that was flexible working

912
00:35:49.635 --> 00:35:51.365
because actually, you know,

913
00:35:51.765 --> 00:35:53.845
starting work a little bit later can really help

914
00:35:53.845 --> 00:35:57.005
with a range of those different symptoms, um, that we saw.

915
00:35:57.625 --> 00:35:59.685
But you know, I mentioned talking about it

916
00:35:59.685 --> 00:36:01.285
and I think that is the key.

917
00:36:02.385 --> 00:36:05.605
If women feel that they can talk about their symptoms, um,

918
00:36:05.835 --> 00:36:07.005
then it's going to help.

919
00:36:07.225 --> 00:36:09.765
Now that's not just talking to anyone though.

920
00:36:09.945 --> 00:36:11.765
Um, two thirds of women said

921
00:36:11.765 --> 00:36:13.885
that they wouldn't feel comfortable talking

922
00:36:14.005 --> 00:36:15.045
to a male line manager,

923
00:36:15.785 --> 00:36:19.045
but 77% said they would feel comfortable talking

924
00:36:19.065 --> 00:36:20.245
to a female line manager.

925
00:36:20.505 --> 00:36:23.925
So I think what the key point, you know, that shows us is,

926
00:36:24.145 --> 00:36:26.205
you know, have a female line manager available

927
00:36:26.505 --> 00:36:29.685
or some other kind of senior women if you know, if that's

928
00:36:30.185 --> 00:36:32.085
who, what people want to speak to.

929
00:36:32.205 --> 00:36:36.405
Mm-Hmm. Um, so the other thing

930
00:36:36.405 --> 00:36:39.005
to probably ask it, especially if you're an employee, is,

931
00:36:39.005 --> 00:36:41.965
you know, are there support networks in your organization?

932
00:36:42.355 --> 00:36:44.525
Because actually discussing symptoms

933
00:36:45.045 --> 00:36:46.525
collectively it can really help.

934
00:36:46.545 --> 00:36:49.005
You can share solutions and things like that. I think

935
00:36:49.005 --> 00:36:51.845
That's great if you've got a network of people are going

936
00:36:51.845 --> 00:36:53.205
through the same thing as you

937
00:36:53.305 --> 00:36:55.405
and I just some way can chat, it's great, isn't it?

938
00:36:55.475 --> 00:36:58.725
Yeah. And you know, for the last, um, good few years,

939
00:36:58.775 --> 00:37:03.285
Royal London's had a, a training for, um, line managers, men

940
00:37:03.285 --> 00:37:05.245
and women about periods and the menopause.

941
00:37:05.245 --> 00:37:07.685
Mm-Hmm. And what's been really interesting is the feedback

942
00:37:07.715 --> 00:37:11.445
from men who've said, not only do they know how to help, uh,

943
00:37:11.445 --> 00:37:13.405
some of their, um, female staff,

944
00:37:13.745 --> 00:37:15.765
but they also now understand a bit more about

945
00:37:15.765 --> 00:37:17.485
what their wives and daughters are going through.

946
00:37:17.485 --> 00:37:19.245
Exactly. Yeah. So actually it's, it's kind

947
00:37:19.245 --> 00:37:21.485
of on a wider than a, a workplace Yeah.

948
00:37:21.665 --> 00:37:23.045
As well. So, you know,

949
00:37:23.045 --> 00:37:25.765
and we know employers really want to keep staff.

950
00:37:26.325 --> 00:37:27.725
Retentions really, really important.

951
00:37:28.105 --> 00:37:30.845
82% of the women we spoke to said

952
00:37:30.845 --> 00:37:33.485
that if their employer helped them through the menopause,

953
00:37:33.485 --> 00:37:34.805
they would stay with that employer.

954
00:37:35.085 --> 00:37:37.965
Brilliant. So that's massive. Yeah. Um, brilliant.

955
00:37:38.115 --> 00:37:40.205
Also ask your employer, if you don't know,

956
00:37:40.385 --> 00:37:42.805
are there any employee assistance programs

957
00:37:42.805 --> 00:37:45.965
or these can provide great information, counselling,

958
00:37:46.455 --> 00:37:49.645
specialist nurses to talk to a variety of different things.

959
00:37:49.785 --> 00:37:51.525
So that's another one to check.

960
00:37:51.625 --> 00:37:54.525
And you know, also individually you might have

961
00:37:55.035 --> 00:37:57.125
life critical illness, income protection plan.

962
00:37:57.145 --> 00:37:59.165
So you might have taken one of these out when you've got

963
00:37:59.165 --> 00:38:00.205
a new mortgage, for example.

964
00:38:00.785 --> 00:38:03.045
Now these aren't just for when the worst might happen,

965
00:38:03.475 --> 00:38:06.885
they actually provide really good added value services.

966
00:38:06.915 --> 00:38:09.765
That could be online GP appointments, it could be kind

967
00:38:09.765 --> 00:38:13.085
of information again, sort of nurse appointments, loads

968
00:38:13.085 --> 00:38:14.605
of information about health and wellbeing.

969
00:38:14.745 --> 00:38:16.845
So that's worth checking, um, as well.

970
00:38:17.065 --> 00:38:19.165
So, so I think there's a lot of different things

971
00:38:19.165 --> 00:38:21.885
that you can do and ask about as, as an employee,

972
00:38:22.385 --> 00:38:23.805
um, or an individual.

973
00:38:24.065 --> 00:38:26.725
So, so hopefully I've highlighted some of the issues

974
00:38:26.725 --> 00:38:27.725
that face women.

975
00:38:28.305 --> 00:38:31.685
Yes. Um, and also some things that would affect men as well.

976
00:38:31.745 --> 00:38:33.765
Agreed. Yeah. But we've thought about some potential

977
00:38:33.765 --> 00:38:36.325
solutions, you know, know, learn to love your pension,

978
00:38:36.355 --> 00:38:38.965
develop a, a confidence in knowing more, I think.

979
00:38:39.465 --> 00:38:42.605
Um, and it, it's not about, as we mentioned,

980
00:38:42.965 --> 00:38:44.285
changing the decisions you might make,

981
00:38:44.305 --> 00:38:45.805
but having more information

982
00:38:45.805 --> 00:38:47.365
and knowing the impact that might have.

983
00:38:48.005 --> 00:38:50.285
I totally agree. I've learned loads, loads today as well.

984
00:38:50.605 --> 00:38:51.805
I think there's lots of,

985
00:38:52.315 --> 00:38:54.365
well I think it's brilliant thank you very much.

986
00:38:54.455 --> 00:38:55.525
Thank you very much Claire.

987
00:38:55.755 --> 00:38:57.885
Well, um, let, let's go back to Rachel

988
00:38:58.165 --> 00:38:59.765
'cause I'm sure we've had, well we've had lots

989
00:38:59.765 --> 00:39:02.685
of people tuning in today, Rachel, have we had any, um,

990
00:39:03.125 --> 00:39:05.405
comments, chat questions come through?

991
00:39:05.745 --> 00:39:06.765
We have. We've had lots.

992
00:39:06.765 --> 00:39:08.445
And it is, it is a great session, Claire.

993
00:39:08.445 --> 00:39:10.405
So thank you very much. It's, it is one of them.

994
00:39:10.625 --> 00:39:12.285
We know it's a problem, don't we?

995
00:39:12.625 --> 00:39:14.765
Um, but, so it's good to have these tips

996
00:39:14.905 --> 00:39:17.365
and to have this knowledge to know how we can, you know,

997
00:39:17.365 --> 00:39:20.445
maybe, um, make a difference to our pension pots.

998
00:39:20.865 --> 00:39:22.645
And a lot of people on the chat are

999
00:39:22.645 --> 00:39:23.805
saying, this has been really helpful.

1000
00:39:23.905 --> 00:39:26.285
If they knew this, these sort of things

1001
00:39:26.285 --> 00:39:29.085
before, um, you know, going into parenthood,

1002
00:39:29.085 --> 00:39:31.445
it would've helped them to become a lot more prepared.

1003
00:39:31.825 --> 00:39:34.125
And also a few people are saying, it'd be great, there needs

1004
00:39:34.125 --> 00:39:37.365
to be more, um, TV shows like this that, you know,

1005
00:39:37.365 --> 00:39:38.685
particularly cover these topics.

1006
00:39:38.865 --> 00:39:41.605
So it's been really, uh, really insightful. Thank you.

1007
00:39:41.985 --> 00:39:45.005
Um, I am, I'm gonna move on to viewers questions then.

1008
00:39:45.005 --> 00:39:47.445
So we, we have got a fair few coming in, um,

1009
00:39:48.185 --> 00:39:52.005
I'm gonna kick off with, um, so our first question,

1010
00:39:52.025 --> 00:39:53.965
if you stop work to care for children,

1011
00:39:54.545 --> 00:39:56.525
do you get state pension credits?

1012
00:39:57.185 --> 00:39:59.445
So state pension is something we're always asked about,

1013
00:39:59.465 --> 00:40:01.965
and I mentioned it in terms of kind of grandparents there.

1014
00:40:02.265 --> 00:40:04.645
If you stop work to care for a child, um,

1015
00:40:04.665 --> 00:40:07.765
you should get 12 years of national insurance credits.

1016
00:40:08.625 --> 00:40:09.925
But, and there's a bit of a

1017
00:40:09.925 --> 00:40:13.805
but here, so it has to be the person who stopped work has

1018
00:40:13.805 --> 00:40:15.325
to apply for child benefit.

1019
00:40:15.985 --> 00:40:17.685
Now there's something called the high income

1020
00:40:17.685 --> 00:40:18.885
child benefit tax charge.

1021
00:40:18.885 --> 00:40:22.365
And that put a lot of people, um, off actually applying

1022
00:40:22.425 --> 00:40:24.365
for child benefit because they didn't

1023
00:40:24.365 --> 00:40:25.525
want to pay a tax charge.

1024
00:40:26.065 --> 00:40:30.325
Now that, um, you know, it, it's kind of now

1025
00:40:30.325 --> 00:40:32.085
what you can do is apply Mm-Hmm.

1026
00:40:32.165 --> 00:40:34.445
You don't have to receive the money for child benefit.

1027
00:40:34.585 --> 00:40:35.765
So you wouldn't have the tax charge,

1028
00:40:35.785 --> 00:40:39.085
but especially if you're stopping work, that is the trigger

1029
00:40:39.105 --> 00:40:40.125
to get those 12 years.

1030
00:40:40.145 --> 00:40:42.565
So it's really important that you make sure you

1031
00:40:42.665 --> 00:40:44.205
are registered for child benefit.

1032
00:40:44.555 --> 00:40:46.005
It's also important because it's

1033
00:40:46.005 --> 00:40:48.365
what triggers your child getting a national insurance number

1034
00:40:48.365 --> 00:40:49.485
when they're about 10 15.

1035
00:40:49.625 --> 00:40:51.925
Oh, right. And I've had a few friends sort

1036
00:40:51.925 --> 00:40:53.765
of query why their children, you know,

1037
00:40:53.765 --> 00:40:55.685
they want a part-time job and why they haven't

1038
00:40:55.965 --> 00:40:57.085
received a national insurance number.

1039
00:40:57.105 --> 00:41:00.085
So that's why. So make sure the person who's stopping work

1040
00:41:00.715 --> 00:41:03.005
applies for, um, child benefit.

1041
00:41:03.425 --> 00:41:05.205
If you don't want to receive the money,

1042
00:41:05.625 --> 00:41:07.765
you can tick the box saying you don't want to receive it,

1043
00:41:07.785 --> 00:41:09.405
but that triggers your 12 years

1044
00:41:09.465 --> 00:41:11.925
and that goes towards your state pension, um, record.

1045
00:41:12.975 --> 00:41:15.045
Great stuff. Thank you. And just further to that, Claire,

1046
00:41:15.105 --> 00:41:17.685
can everybody, can everybody get child benefit?

1047
00:41:19.145 --> 00:41:22.085
So yeah, so child benefit is a universal benefit.

1048
00:41:22.305 --> 00:41:24.165
So it does mean that anyone can get it,

1049
00:41:24.225 --> 00:41:26.285
but what happens is if um,

1050
00:41:26.505 --> 00:41:30.365
one person in the household earns over now 60,000 pounds,

1051
00:41:30.465 --> 00:41:34.045
so, um, then they might have a tax charge to pay.

1052
00:41:34.265 --> 00:41:37.125
So, you know, by the time you get to 80,000 pounds,

1053
00:41:37.195 --> 00:41:39.165
that tax charge actually is the same

1054
00:41:39.385 --> 00:41:41.085
as the child benefit you would receive.

1055
00:41:41.345 --> 00:41:43.765
And that's why lots of people choose not to receive it.

1056
00:41:43.785 --> 00:41:46.645
Now, it used to be start at 50, 50,000

1057
00:41:46.705 --> 00:41:50.405
and stop at 60,000, um, for kind of losing the benefit.

1058
00:41:51.145 --> 00:41:53.205
Um, but that went up last year.

1059
00:41:53.425 --> 00:41:55.805
So it might be people decided not

1060
00:41:55.865 --> 00:41:57.085
to apply for child benefit.

1061
00:41:58.145 --> 00:42:01.525
Um, but actually if they perhaps earn 55,000,

1062
00:42:01.675 --> 00:42:04.565
it's worth them applying for child benefit now.

1063
00:42:04.705 --> 00:42:06.005
So it's definitely one to have a look at.

1064
00:42:06.265 --> 00:42:08.805
Um, and we've got information on this and our role

1065
00:42:08.805 --> 00:42:10.525
and done, um, website as well.

1066
00:42:11.655 --> 00:42:12.765
Great stuff. Thank you.

1067
00:42:12.765 --> 00:42:13.845
Okay, our next question then,

1068
00:42:13.885 --> 00:42:14.925
I think we touched on this earlier,

1069
00:42:14.985 --> 00:42:17.485
but I'll just, uh, let's just have a little overview on it.

1070
00:42:17.745 --> 00:42:20.925
Um, can a partner pay into my pension on my behalf?

1071
00:42:21.955 --> 00:42:24.565
Yeah, so I mean what it's kind of,

1072
00:42:25.145 --> 00:42:27.405
um, I suppose it depends.

1073
00:42:27.535 --> 00:42:29.765
Often we say this about pensions as well, doesn't it?

1074
00:42:29.765 --> 00:42:32.405
Mm-Hmm. Um, so if you've got kind of your own pension,

1075
00:42:32.505 --> 00:42:34.325
so we stopped about someone who'd stopped work.

1076
00:42:34.665 --> 00:42:36.765
Now they would have a, a private pension themselves

1077
00:42:36.765 --> 00:42:37.805
with a pension company.

1078
00:42:38.345 --> 00:42:41.005
Um, and so their partner could set that up coming out of,

1079
00:42:41.005 --> 00:42:43.325
if you've got joint bank accounts that could come out

1080
00:42:43.325 --> 00:42:44.685
with the person who's working bank account

1081
00:42:44.785 --> 00:42:46.685
and that could be paid to the pension company.

1082
00:42:47.265 --> 00:42:48.605
If you're in a workplace pension

1083
00:42:48.605 --> 00:42:52.325
because you're working part-time, then if you increase, um,

1084
00:42:52.665 --> 00:42:54.405
you know, kind of the percentage you're paying,

1085
00:42:54.425 --> 00:42:57.485
so say you're paying, um, the kinda statute minimum,

1086
00:42:57.625 --> 00:43:00.605
so 5% you increase it to say seven

1087
00:43:00.605 --> 00:43:04.645
or 8%, then that will be deducted from your pay.

1088
00:43:05.185 --> 00:43:07.005
But then, you know, it just means

1089
00:43:07.005 --> 00:43:08.805
that your partner maybe pays for more

1090
00:43:08.985 --> 00:43:12.565
or you know, so, so it's kind of paying on a joint basis.

1091
00:43:13.345 --> 00:43:14.605
Um, but they wouldn't,

1092
00:43:14.635 --> 00:43:17.085
it's not your partner paying directly into it

1093
00:43:17.085 --> 00:43:18.405
because it's a workplace pension.

1094
00:43:18.505 --> 00:43:19.605
It would be taken straight off.

1095
00:43:21.445 --> 00:43:23.725
Brilliant. Brilliant. Thank you. No, that's great.

1096
00:43:23.725 --> 00:43:26.445
That's really helpful. Okay. Um, next question.

1097
00:43:26.905 --> 00:43:29.765
Um, does shared parental leave could

1098
00:43:29.765 --> 00:43:31.685
that potentially help with this problem?

1099
00:43:33.225 --> 00:43:34.965
So, so it's a really interesting one.

1100
00:43:35.165 --> 00:43:37.325
I, you know, I kind of, I mentioned Sweden earlier,

1101
00:43:37.585 --> 00:43:38.925
my brother lives in Sweden, so I'm,

1102
00:43:38.945 --> 00:43:40.445
I'm quite interested in all of this.

1103
00:43:41.025 --> 00:43:43.205
Um, and in countries, you know,

1104
00:43:43.205 --> 00:43:45.005
we do have shared parental leave here

1105
00:43:45.145 --> 00:43:46.245
now and I think that's great.

1106
00:43:46.325 --> 00:43:49.125
I think what we need is more men to actually be taking

1107
00:43:49.695 --> 00:43:51.485
their kinda shared parental leave.

1108
00:43:52.005 --> 00:43:54.165
I feel D here No, not at all.

1109
00:43:54.425 --> 00:43:56.765
But I think we need men senior kind of levels

1110
00:43:56.825 --> 00:43:58.325
to be demonstrating that this is

1111
00:43:58.775 --> 00:44:00.325
acceptable and should be done.

1112
00:44:01.545 --> 00:44:04.245
But what we notice sometimes in countries where it's much,

1113
00:44:04.245 --> 00:44:05.525
they've been doing it for a lot longer.

1114
00:44:05.745 --> 00:44:07.365
So Sweden's one of those mm-Hmm.

1115
00:44:07.365 --> 00:44:09.805
Is that often kind of the women takes off the first part,

1116
00:44:10.195 --> 00:44:12.965
then the, the man takes off parental leave.

1117
00:44:12.965 --> 00:44:14.365
So the women goes back full time

1118
00:44:15.465 --> 00:44:17.685
and then what happens is they don't change to part-time,

1119
00:44:18.035 --> 00:44:19.885
they just stay being full-time.

1120
00:44:19.985 --> 00:44:21.965
So it's just an interesting kind of dynamic.

1121
00:44:22.265 --> 00:44:25.325
So, um, so I think it could create some change.

1122
00:44:25.525 --> 00:44:29.085
I think it's great for dads to be, you know, have time

1123
00:44:29.105 --> 00:44:30.405
by themselves with their children.

1124
00:44:30.605 --> 00:44:33.045
I think, you know, my husband really, um, enjoyed

1125
00:44:33.045 --> 00:44:34.125
that time most of the time.

1126
00:44:34.505 --> 00:44:36.965
Um, the children enjoyed, I think it's good Yeah.

1127
00:44:36.965 --> 00:44:39.485
To have that experience of, you know, um,

1128
00:44:39.655 --> 00:44:41.565
being the caterer for your child.

1129
00:44:42.145 --> 00:44:44.845
Um, so hopefully that will change things.

1130
00:44:45.145 --> 00:44:47.165
Um, and you know, things like my husband,

1131
00:44:47.265 --> 00:44:48.845
our first was born 20 years ago,

1132
00:44:49.385 --> 00:44:51.725
but my husband a couple of times tried to go

1133
00:44:51.725 --> 00:44:53.805
to things like mother and toddler groups.

1134
00:44:54.345 --> 00:44:55.845
Um, and he was the only man.

1135
00:44:55.905 --> 00:44:57.685
Now hopefully that might have changed as well.

1136
00:44:57.705 --> 00:44:59.885
We might see that there's more men going

1137
00:44:59.905 --> 00:45:01.405
to these kind of groups as well.

1138
00:45:01.945 --> 00:45:04.805
So you're kind of saying that it could feel quite awkward

1139
00:45:04.865 --> 00:45:07.605
for being an only male in a Yeah.

1140
00:45:07.975 --> 00:45:11.885
Could be put off people. Yeah. Great. Okay.

1141
00:45:12.025 --> 00:45:16.325
So, um, Rachel, I think we're nearly, um, at time. Um, have

1142
00:45:16.325 --> 00:45:17.325
We got, okay. Yeah. If it's all right,

1143
00:45:17.325 --> 00:45:17.645
I'll

1144
00:45:17.645 --> 00:45:18.685
finish with this question then.

1145
00:45:18.685 --> 00:45:20.365
Okay. Yeah. Great. Because we've, we've had quite,

1146
00:45:20.365 --> 00:45:21.965
quite a few comments on this, Claire probably,

1147
00:45:21.965 --> 00:45:24.045
as you can expect, there's a, there's a few people

1148
00:45:24.345 --> 00:45:28.165
who are paying into a pension, not quite sure if they're,

1149
00:45:28.185 --> 00:45:29.685
if they've contributed enough

1150
00:45:29.825 --> 00:45:33.485
and looking for maybe some guidance around how,

1151
00:45:33.545 --> 00:45:35.805
how can they be sure that that, that they,

1152
00:45:35.915 --> 00:45:36.965
they have a good pension.

1153
00:45:37.075 --> 00:45:38.925
What is a good pension? What does that look like?

1154
00:45:39.235 --> 00:45:40.645
Yeah, so I think it, it's different.

1155
00:45:40.705 --> 00:45:42.925
So, um, there's a lot of women

1156
00:45:43.105 --> 00:45:46.445
who are in public sector jobs, so teaching Mm-hmm.

1157
00:45:46.945 --> 00:45:51.085
You know, medicine, these type of things are, are still, um,

1158
00:45:51.275 --> 00:45:52.725
what we would've called defi,

1159
00:45:52.725 --> 00:45:55.045
well they're called defined benefit, um, pensions.

1160
00:45:55.045 --> 00:45:56.525
Now they're really valuable

1161
00:45:56.525 --> 00:45:57.965
because they provide a kind of GaN

1162
00:45:57.965 --> 00:45:59.165
and teed income in retirement.

1163
00:45:59.465 --> 00:46:01.805
So, you know, really worth their weight in gold.

1164
00:46:01.825 --> 00:46:05.925
So, um, that you, you might have to pay a bit more,

1165
00:46:06.025 --> 00:46:07.085
but you know, you're going to have

1166
00:46:07.085 --> 00:46:08.765
that guaranteed income in retirement.

1167
00:46:08.865 --> 00:46:10.605
So I would say that, you know, they're still very,

1168
00:46:10.605 --> 00:46:13.405
very valuable I think, to know how much you're paying.

1169
00:46:13.785 --> 00:46:15.845
We do have a statutory kind of minimum

1170
00:46:15.955 --> 00:46:19.205
that you pay 5% your employer pays, um, 3%.

1171
00:46:19.905 --> 00:46:23.205
But it's worth, and that's why looking at if there's an app

1172
00:46:23.205 --> 00:46:24.725
or a website, look at actually what

1173
00:46:24.725 --> 00:46:25.885
that would give you in retirement.

1174
00:46:26.585 --> 00:46:29.765
And then check those retirement living standards to see if

1175
00:46:29.765 --> 00:46:31.965
that's going to give you the type of retirement you want.

1176
00:46:32.155 --> 00:46:35.205
There's three levels, minimum, moderate, and comfortable.

1177
00:46:35.705 --> 00:46:38.725
Um, so you know, it might be that you can kind

1178
00:46:38.725 --> 00:46:41.645
of look on your app, you can look on different, um,

1179
00:46:42.035 --> 00:46:44.445
sources available through your pension company

1180
00:46:44.545 --> 00:46:46.125
or through your employer to see,

1181
00:46:46.125 --> 00:46:48.085
well actually if I increased it to 9%

1182
00:46:48.085 --> 00:46:51.485
or 10%, could that give me more in retirement?

1183
00:46:51.485 --> 00:46:53.565
And what actually, how much more would it give me?

1184
00:46:53.865 --> 00:46:56.125
And also investigate what your employer will offer you.

1185
00:46:56.225 --> 00:47:00.045
So some employers will do things, you know, called matching.

1186
00:47:00.145 --> 00:47:01.965
Mm. Where if you pay a little bit more,

1187
00:47:01.995 --> 00:47:03.525
they'll pay a little bit more as well.

1188
00:47:03.665 --> 00:47:06.245
So that's great. It's, it's kind of, it is getting money

1189
00:47:06.265 --> 00:47:07.405
for fee from your employer,

1190
00:47:07.545 --> 00:47:09.445
but you have to agree to pay a bit more as well.

1191
00:47:09.585 --> 00:47:13.485
So I would definitely sign up to those, um, you know,

1192
00:47:13.595 --> 00:47:15.445
that will make a substantial difference,

1193
00:47:15.625 --> 00:47:16.725
um, to your retirement too.

1194
00:47:18.335 --> 00:47:20.855
Brilliant, Claire, thank you so much for that, Rachel.

1195
00:47:21.195 --> 00:47:22.335
Um, so we're gonna leave it there.

1196
00:47:22.335 --> 00:47:23.895
Rachel, you got any final thoughts?

1197
00:47:24.285 --> 00:47:26.575
Yeah, no, I, I I'm being told I've got to wrap up

1198
00:47:26.855 --> 00:47:28.135
'cause we've gone over, I'm over the time lot.

1199
00:47:28.135 --> 00:47:30.845
Sorry. No, it's not you, but yeah, it is Rick,

1200
00:47:31.105 --> 00:47:33.525
but I'm just going to put into the chat the link

1201
00:47:33.525 --> 00:47:35.245
to the retirement living standards Okay.

1202
00:47:35.245 --> 00:47:36.445
Um, that we just touched on then.

1203
00:47:36.545 --> 00:47:37.605
So if anybody wants to go

1204
00:47:37.605 --> 00:47:40.205
and check those out, the link will be on the chat.

1205
00:47:40.725 --> 00:47:41.765
Brilliant. Well thank you Rachel.

1206
00:47:41.865 --> 00:47:44.245
Claire, thank you so much again for another great show.

1207
00:47:44.305 --> 00:47:46.565
Really enjoyed it. Very, very insightful.

1208
00:47:46.985 --> 00:47:49.365
Um, we'll see you again, I'm sure. Yeah.

1209
00:47:49.385 --> 00:47:51.725
You gonna come, come and see us back in Grey? Yes, always.

1210
00:47:51.725 --> 00:47:53.325
Lovely, lovely. Thank you very much for having me. Lovely.

1211
00:47:53.325 --> 00:47:54.765
You're welcome. And thank you. And thank you

1212
00:47:54.765 --> 00:47:56.005
for yourselves for joining as well.

1213
00:47:56.005 --> 00:47:57.605
I hope you enjoyed the show. Remember

1214
00:47:57.605 --> 00:48:00.005
to use pension awareness day.com website if you want

1215
00:48:00.005 --> 00:48:02.085
to go back and watch this show if you need any notes.

1216
00:48:02.545 --> 00:48:04.485
Um, and if you wanna book onto any of other shows,

1217
00:48:04.825 --> 00:48:06.125
um, we'd love to see you there.

1218
00:48:06.315 --> 00:48:08.005
Take care and we'll see you soon. Bye.